<PAGE> 1
THE PNC(R) FUND
BELLEVUE PARK CORPORATE CENTER
400 BELLEVUE PARKWAY
WILMINGTON, DE 19809
April 27, 1995
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of The PNC
Fund covering the six months ended March 31, 1995. This report includes security
listings and performance results for the money market portfolios of The PNC
Fund.
These portfolios cover a wide range of money market fund objectives,
allowing shareholders to more precisely match their investments with their
overall financial goals. The portfolios are managed with a sophisticated blend
of discipline, experience and expertise. Each of the money market portfolios
continues to provide investors with a competitive short-term investment product
that seeks a high level of current income consistent with maintaining liquidity
and stability of principal.
If you have any questions regarding The PNC Fund or the enclosed
information, please contact the Fund at 1-800-422-6538.
We appreciate your participation in The PNC Fund and we welcome
opportunities to better service your needs.
Sincerely,
/s/ G. WILLING PEPPER
----------------------
G. Willing Pepper
Chairman and President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, PNC BANK, NATIONAL ASSOCIATION OR ANY OTHER BANK AND SHARES ARE NOT
FEDERALLY INSURED BY, GUARANTEED BY, OBLIGATIONS OF OR OTHERWISE SUPPORTED BY
THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER GOVERNMENTAL AGENCY. INVESTMENTS IN SHARES OF THE
FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED. THERE CAN BE NO ASSURANCE THAT THE PORTFOLIOS WILL BE ABLE TO MAINTAIN
A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
<PAGE> 2
THE PNC FUND
SEMI-ANNUAL REPORT OF THE INVESTMENT ADVISER
Last year, the fixed income markets were hard hit by rising interest rates
and derivative-related losses. The first quarter of 1995 got off to an
inauspicious start with another increase in short-term interest rates, the
financial crisis in Mexico, and the decline in the dollar. One area that does
appear to be experiencing a trend change is the pace of business activity. In
the fourth quarter of last year, the economy grew by a revised 4.6%, pushing the
annual rate of growth to 4.0%, the strongest showing in ten years. Estimates for
the first quarter average around 3%, based on signs of lower consumer spending,
declining auto sales and a softer housing market. In recent congressional
testimony, Fed Chairman Greenspan indicated that the FOMC expects the economy to
expand at a 2-3% rate in 1995. Greenspan even used the word "ease" in his
February 1995 testimony, causing the markets to rally strongly, but temporarily,
on the belief that the year long rise in interest rates was about over.
The Fed also has reason to be pleased with the inflation numbers. The
fourth quarter GDP report revealed that prices advanced only 1.3%, versus 1.9%
in the previous quarter. For 1994, consumer prices were up 2.7%, exactly the
same as in 1993. The FOMC is estimating that consumer prices will average
3.0-3.5% in 1995.
Short-term interest rates continued their upward climb during the last two
quarters. The Federal Reserve tightened policy twice, in November 1994 and
February 1995, for a total of 125 basis points, bringing the federal funds rate
to 6.00%. Fourth quarter economic reports continued to suggest that business was
expanding, and that further Fed action was likely in the new year. On February
1, 1995, the FOMC voted to increase the federal funds target and discount rates
by 50 basis points to 6.00% and 5.25%, respectively. Although this was the first
interest rate hike of 1995, market expectations that it would also be the last
ignited a strong rally that flattened the yield curve. Three-month and six-month
Treasury bill yields fell to 5.83% and 6.11%, respectively, while the
three-month and six-month LIBOR decreased to 6.19% and 6.38%, respectively.
The big story in the municipal market was the bankruptcy filing of Orange
County, CA in December 1994. This action shocked the short-term tax-free
markets, causing yields to rise by more than 50 basis points. In the wake of
Orange County's bankruptcy filing, there have been reports of other derivative-
related losses in Florida and Wisconsin, but the markets have calmed down
considerably from year-end levels. The start of the new year saw the expected
increase in short-term tax-free assets from bond coupon payments and called
bonds. Increased demand for liquid, short-term investments due to anticipation
of another rate increase by the Fed also contributed to the inflow of money into
short-term tax-exempt securities.
The last few months also saw a decrease in long-term yields as economic
activity started to show signs of slowing. The 2-year Treasury bond began the
period at 7.69% and steadily declined to 6.78% by March 31, 1995. The
intermediate sector experienced a similar decline in rates with the 5-year
Treasury bond decreasing from 7.83% at the end of December to 7.07% by March 31,
1995. Longer yields followed a similar pattern as the 30-year Treasury bond,
which began the period at 7.88%, ended March 1995 at 7.43%.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
April 27, 1995
<PAGE> 3
THE PNC(R) FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
BANK NOTES -- 1.2%
BANKS
NationsBank North Carolina
5.35% 06/07/95 $ 5,000 $ 4,999,958
Northern Trust Bank
5.25% 06/16/95 10,000 9,998,605
------------
TOTAL BANK NOTES
(Cost $14,998,563) 14,998,563
------------
CERTIFICATES OF DEPOSIT -- 17.0%
BANKS -- 2.1%
First National Bank of Boston
6.16% 06/26/95 25,000 25,000,000
------------
YANKEE DOLLAR -- 14.9%
Banque National de Paris
7.025% 02/09/96 25,000 25,003,147
Banque Paribas
6.14% 05/10/95 25,000 25,001,574
Industrial Bank of Japan
6.28% 04/28/95 25,000 25,000,185
Societe Generale
6.06% 05/01/95 25,000 25,000,207
Sumitomo Bank
6.27% 04/28/95 30,000 30,000,000
6.18% 06/30/95 25,000 25,000,000
Svenska Handelsbanken, Inc.
6.25% 04/28/95 25,000 25,000,000
------------
180,005,113
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $205,005,113) 205,005,113
------------
COMMERCIAL PAPER -- 32.3%
AEROSPACE -- 2.0%
Rockwell International Corp.
6.15% 09/06/95 25,000 24,325,208
------------
BANKS -- 5.3%
AMRO N.A. Finance, Inc.
6.22% 08/10/95 30,000 29,320,983
National City Corp.
6.07% 06/27/95 20,000 19,706,617
Toronto Dominion Holdings
USA, Inc.
5.73% 05/02/95 15,000 14,925,988
------------
63,953,588
------------
BROKERAGE -- 1.2%
Morgan Stanley Group
6.22% 08/21/95 15,000 14,631,983
------------
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
CONSUMER NON-DURABLES -- 2.1%
Newell Co.
6.15% 04/27/95 $25,000 $ 24,888,958
------------
CREDIT INSTITUTIONS -- 15.2%
Ciesco L.P.
6.09% 05/08/95 20,000 19,874,817
C.I.T. Group Holdings, Inc.
6.10% 06/29/95 25,000 24,622,986
Ford Motor Credit Corp.
6.16% 09/11/95 40,000 38,884,356
General Motors Acceptance Corp.
6.08% 04/17/95 25,000 24,932,444
6.10% 05/02/95 25,000 24,868,681
Sanwa Business Credit Corp.
6.16% 04/27/95 20,000 19,911,022
Sears Roebuck Acceptance Corp.
6.27% 04/10/95 30,000 29,952,975
------------
183,047,281
------------
DRUGS & HEALTH CARE -- 1.6%
Eli Lilly & Co.
6.20% 06/01/95 20,000 19,789,889
------------
FINANCE -- 4.9%
Beta Finance, Inc.
5.65% 04/04/95 10,000 9,995,292
Corporate Receivables Corp.
6.10% 05/08/95 15,100 15,005,331
McKenna Triangle National Corp.
6.30% 08/07/95 10,000 9,776,000
Sears Roebuck Acceptance Corp.
6.24% 06/05/95 25,000 24,718,333
------------
59,494,956
------------
TOTAL COMMERCIAL PAPER
(Cost $390,131,863) 390,131,863
------------
TIME DEPOSITS -- 4.1%
BANKS
Society National Bank Cleveland
6.4375% 04/03/95 50,000 50,000,000
------------
(Cost $50,000,000)
VARIABLE RATE OBLIGATIONS -- 37.0%
BANKS -- 7.9%
Comerica Bank -- Detroit
5.93%** 04/04/95 50,000 49,973,885
First National Bank Chicago
6.31%** 04/03/95 45,000 44,996,240
------------
94,970,125
------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
VARIABLE RATE OBLIGATIONS (CONTINUED)
BROKERAGE -- 16.8%
Bear Stearns & Co., Inc.
6.04%** 04/04/95 $45,000 $ 45,000,000
Bear Stearns Treasury Rate Notes
6.03%** 04/04/95 15,000 15,000,000
Goldman Sachs Group L.P.
6.4375%** 04/08/95 47,000 47,000,000
Lehman Brothers Holdings, Inc.
6.40%** 06/07/95 50,000 50,000,000
Morgan Stanley Group
6.225%** 04/19/95 15,000 15,000,000
Morgan Stanley Group Mtn C
5.92%** 04/04/95 30,000 29,999,663
------------
201,999,663
------------
BUSINESS SERVICES -- 1.0%
PHH Corp.
6.04%** 04/04/95 12,000 12,000,000
------------
FINANCE -- 4.6%
J. P. Morgan Securities, Inc.
6.175%** 04/10/95 55,000 55,000,000
------------
STUDENT LOAN MARKETING ASSOCIATION -- 6.7%
5.97%** 04/04/95 25,000 25,000,000
6.01%** 04/04/95 20,000 20,000,000
6.02%** 04/04/95 21,000 20,996,046
6.03%** 04/04/95 15,000 14,992,363
------------
80,988,409
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $444,958,197) 444,958,197
------------
REPURCHASE AGREEMENTS -- 7.9%
Morgan Stanley & Co.
6.40% 04/03/95 95,000 95,000,000
(Agreement dated 03/31/95 to ------------
be repurchased at $95,050,667.
Collateralized by $216,098,879
Federal National Mortgage As-
sociation 6.00% to 12.00% due
06/01/05 to 03/01/25. The
market value of the collateral
is $97,036,450.)
(Cost $95,000,000)
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- --------------
<S> <C> <C>
INFINITY CASH RESERVE --
PRIME -- 0.6%
(Cost $7,115,490) 7,115,490 $ 7,115,490
--------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,207,209,226*) 100.1% 1,207,209,226
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.1%) (739,423)
--------- --------------
NET ASSETS (Equivalent to $1.00
per share based on
593,927,411 Institutional
shares, 605,221,765 Service
shares and 7,301,881 Series A
Investor shares outstanding) 100.0% $1,206,469,803
====== ==============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL, SERVICE AND
SERIES A INVESTOR SHARE
($1,206,469,803 / 1,206,451,057) $1.00
=====
</TABLE>
- -------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1995, and maturities shown are the
longer of the next interest readjustment date or the date the principal
amount owed can be recovered through demand.
See accompanying notes to financial statements.
4
<PAGE> 5
THE PNC(R) FUND
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- -----------
<S> <C> <C> <C>
ALABAMA -- 4.8%
Birmingham-Baptist Medical
Centers Special Care Facilities
Financing Authority (Senior
Living Communities, Inc.
Project) Series 1990A DN
4.25% ** 04/07/95 $ 7,240 $ 7,240,000
Port City Medical Clinic Board of
Mobile (Mobile Infirmary
Association Project)
Series 1992A MB
4.00% 05/01/95 1,000 1,000,000
4.10% 05/09/95 2,600 2,600,000
-----------
10,840,000
-----------
ALASKA -- 1.4%
Valdez Marine Terminal Refunding
(ARCO Transportation Project)
Series 1994A MB
4.30% 05/01/95 2,125 2,125,000
4.25% 05/05/95 1,000 1,000,000
-----------
3,125,000
-----------
ARIZONA -- 2.2%
Apache County IDA (Tucson
Electric Power Company
Springerville Project)
Series 1983B DN
4.25%** 04/07/95 2,600 2,600,000
Apache County IDA (Tucson
Electric Power Company
Springerville Project)
Series 1985A DN
4.20%** 04/07/95 2,200 2,200,000
Phoenix IDA Multifamily Housing
Refunding (Paradise Shadows II
Apartments Project)
Series 1989 DN
4.05%** 04/07/95 75 75,000
-----------
4,875,000
-----------
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- -----------
<S> <C> <C> <C>
CALIFORNIA -- 7.1%
California Higher Education Loan
Authority Student Loan Refunding
Series 1987A MB
3.60% 05/01/95 $ 1,000 $ 1,000,000
California Series 1994-95A RAN
5.00% 06/28/95 3,000 3,004,352
California Series 1994-95B RAN
4.41% ** 04/03/95 5,000 5,000,000
Los Angeles County
Series 1994 TRAN
4.50% 06/30/95 7,000 7,007,190
-----------
16,011,542
-----------
COLORADO -- 5.4%
Arapahoe County Capital
Improvement Highway Revenue
(E-470 Project)
Series 1986G MB
4.45% 08/31/95 5,000 5,000,000
City & County of Denver Airport
System Subordinated Series 1990B
MB
4.35% 05/08/95 2,000 2,000,000
City & County of Denver Airport
System Subordinated Series 1990E
MB
4.35% 05/08/95 2,375 2,375,000
4.40% 05/09/95 2,700 2,700,000
-----------
12,075,000
-----------
CONNECTICUT -- 1.1%
Connecticut Housing Finance
Authority (Housing Mortgage
Finance Program Project)
Series 1993E, Subseries E-1 MB
4.40% 11/15/95 2,500 2,500,000
-----------
DISTRICT OF COLUMBIA -- 0.9%
District of Columbia (The
American University Project)
Series 1985 DN
4.30%** 04/07/95 700 700,000
District of Columbia Hospital
(Columbia Hospital for Women
Project) Series 1988A DN
4.10%** 04/07/95 1,300 1,300,000
-----------
2,000,000
-----------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- -----------
<S> <C> <C> <C>
FLORIDA -- 0.9%
Putnam County Development Au-
thority (Seminole Electric Coop-
erative Project) Series 1984D MB
4.25% 06/15/95 $ 2,000 $ 2,000,000
-----------
GEORGIA -- 2.2%
Burke County Development
Authority PCR (Oglethorpe Power
Corporation Vogtle Project)
Series 1994A MB
4.25% 05/04/95 4,000 4,000,000
Municipal Association Pooled
Bonds Series 1990 DN
4.125%** 04/07/95 1,020 1,020,000
-----------
5,020,000
-----------
HAWAII -- 2.4%
Hawaii Refunding (Topstar
Custodial Receipts) Series 1993C
DN
4.35%** 04/07/95 5,400 5,400,000
-----------
ILLINOIS -- 9.0%
Chicago Gas Supply (Peoples Gas &
Light Company Project) Series
1993B MB
4.95% 12/01/95 2,000 2,000,000
Chicago GO Tender Notes
Series 1994A-2 MB
4.15% 07/19/95 2,000 2,000,000
Chicago O'Hare International
Airport (American Airlines
Project) Series 1983C DN
4.55%** 04/03/95 1,400 1,400,000
Illinois Development Finance
Authority IDRB (6 West Hubbard
Street Project) Series 1986 DN
4.05%** 04/07/95 3,410 3,410,000
Illinois Development Finance
Authority PCR (Illinois Power
Company Project) Series 1993C MB
4.10% 05/31/95 2,600 2,600,000
Illinois Education Facilities
Authority (Art Institute of
Chicago Project) Series 1995 DN
4.25%** 04/07/95 3,000 3,000,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- -----------
<S> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois Health Facilities
Authority (Evanston Hospital
Corporation Project) Series
1985B MB
4.65% 02/15/96 $ 3,000 $ 3,000,000
Illinois Health Facilities
Authority (The Streeterville
Corporation Project) Series 1994
DN
4.20%** 04/07/95 1,000 1,000,000
Village of North Aurora IDA
(Oberweis Dairy Incorporated
Project) Series 1995 DN
4.30%** 04/07/95 2,000 2,000,000
-----------
20,410,000
-----------
INDIANA -- 2.4%
Fort Wayne Hospital Authority
(Parkview Memorial Hospital
Project) Series 1989B DN
4.25%** 04/07/95 300 300,000
Indiana Housing Finance Authority
(Single Family Mortgage Project)
Series 1994D MB
4.30% 07/03/95 1,290 1,290,000
Petersburg PCR (Indianapolis
Power & Light Company Project)
Series 1991 MB
4.30% 05/01/95 2,700 2,700,000
Sullivan Floating Fixed Rate
PCR MB
4.15% 04/07/95 1,110 1,110,000
-----------
5,400,000
-----------
KENTUCKY -- 1.6%
Clark County PCR (Eastern
Kentucky Power Cooperative
Project) Series 1984 MB
3.75% 04/17/95 2,500 2,500,000
Maysville Solid Waste Disposal
Facilities (Inland Container
Corporation Project) Series 1992
TECP
4.00% 04/05/95 1,000 1,000,000
-----------
3,500,000
-----------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- -----------
<S> <C> <C> <C>
LOUISIANA -- 2.4%
Louisiana GO (Custodial
Receipts -- Topstar) Series 1993A-6 DN
4.35%** 04/07/95 $ 3,000 $ 3,000,000
Plaquemines Port Harbor and Ter-
minal District of Marine
Terminal Facilities Refunding
(Electro-Coal Transfer Project)
Series 1985C TECP
4.00% 04/26/95 2,525 2,525,000
-----------
5,525,000
-----------
MASSACHUSETTS -- 1.1%
Commonwealth of Massachusetts GO
Notes Series 1994A
5.00% 06/15/95 2,500 2,504,006
-----------
MICHIGAN -- 0.9%
Northville IDA (Thrifty
Northville Project) Series 1984
DN
4.325%** 04/07/95 2,000 2,000,000
-----------
MINNESOTA -- 2.2%
University of Minnesota (Full
Faith & Credit Project) Series
1985F MB
4.50% 08/01/95 3,000 3,000,000
University of Minnesota (Full
Faith & Credit Project) Series
1985I MB
4.25% 05/15/95 2,000 2,000,000
-----------
5,000,000
-----------
MISSOURI -- 0.6%
Kansas City IDA (Mid America
Health Services Project) Series
1984 DN
4.50%** 04/07/95 1,400 1,400,000
-----------
MONTANA -- 0.5%
Forsyth PCR (Portland General
Electric Company Project) Series
1983D DN
4.15%** 04/07/95 1,200 1,200,000
-----------
NEW HAMPSHIRE -- 9.3%
Business Finance Authority PCR
(New England Power Company
Project) Series 1990A TECP
4.00% 04/05/95 3,500 3,500,000
Business Finance Authority PCR
(New England Power Company
Project) TECP
4.25% 05/10/95 3,000 3,000,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- -----------
<S> <C> <C> <C>
NEW HAMPSHIRE (CONTINUED)
New Hampshire Higher Education &
Health Facilities Authority (VHA
of New England Capital Asset
Financing Program Project)
Series 1985G DN
4.10%** 04/07/95 $ 4,900 $ 4,900,000
New Hampshire IDA Solid Waste
Disposal Facility (United
Illuminating Company Project)
Series A MB
4.50% 09/01/95 9,700 9,700,000
-----------
21,100,000
-----------
NEW JERSEY -- 0.9%
New Jersey Series 1994A TRAN
5.00% 06/15/95 2,000 2,003,790
-----------
NEW MEXICO -- 0.7%
Farmington PCR (Arizona Public
Service Co. Four Corners
Project) Series 1994B DN
4.55%** 04/03/95 1,500 1,500,000
-----------
NEW YORK -- 3.5%
New York City GO Series 1995B DN
4.0625%** 04/07/95 8,000 8,000,000
-----------
NORTH CAROLINA -- 1.5%
North Carolina Eastern Municipal
Power Agency (Power System
Project) Series 1988B MB
4.15% 04/12/95 1,650 1,650,000
North Carolina Medical Care
Commission Hospital (Pooled
Financing Project) Series 1991B
DN
4.55%** 04/03/95 1,700 1,700,000
-----------
3,350,000
-----------
NORTH DAKOTA -- 0.9%
Mercer County (United Power
Association Project) Pooled
Series 1995A MB
4.35% 09/01/95 2,000 2,000,000
-----------
OKLAHOMA -- 1.3%
Muskogee Industrial Trust
Adjustable Rate PCR (Oklahoma
Gas and Electric Company
Project) Series 1995A DN
4.20%** 04/07/95 3,000 3,000,000
-----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- -----------
<S> <C> <C> <C>
PENNSYLVANIA -- 1.5%
Delaware County IDA PCR (Phila-
delphia Electric Company Pro-
ject) Series 1988C MB
4.20% 05/16/95 $ 3,300 $ 3,300,000
-----------
SOUTH DAKOTA -- 3.4%
Lawrence County PCR (Homestake
Mining Company Project) Series
1983 DN
4.25%** 04/07/95 5,700 5,700,000
South Dakota Housing Development
Authority (Homeownership
Mortgage Project) Series 1994H
MB
4.95% 12/13/95 2,000 2,000,000
-----------
7,700,000
-----------
TENNESSEE -- 1.3%
Montgomery County Public Building
Authority GO (Tennessee County
Loan Pool Project) Series 1995
DN
4.30%** 04/07/95 3,000 3,000,000
-----------
TEXAS -- 13.9%
Austin Combined Utility Systems
(Travis and Williamson Counties
Project) MB
4.25% 05/12/95 5,000 5,000,000
Board of Regents University of
Texas TECP
4.00% 05/10/95 3,746 3,746,000
Corpus Christi Port Authority of
Nueces County (Union Pacific
Resource Company Project) Series
1989 MB
4.30% 05/05/95 5,500 5,500,000
Dallas-Fort Worth International
Airport Joint Refunding Series
1992 MB
4.00% 04/06/95 6,500 6,500,000
Harris County Health Facilities
Development Corporation (San
Jacinto Hospital Project) Series
1987A MB
4.20% 06/01/95 4,600 4,600,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- -----------
<S> <C> <C> <C>
TEXAS (CONTINUED)
Texas Public Finance Authority GO
Series 1993A TECP
4.40% 05/18/95 $ 4,000 $ 4,000,000
Texas Series 1994 TRAN
5.00% 08/31/95 2,000 2,002,073
-----------
31,348,073
-----------
UTAH -- 5.0%
Salt Lake City (Pooled Hospital
Financing Program Project)
Series 1990 MB
4.15% 04/10/95 5,705 5,705,000
Utah Housing Finance Agency
(Single Family Mortgage Project)
Series 1993C DN
4.25%** 04/07/95 5,500 5,500,000
-----------
11,205,000
-----------
VIRGINIA -- 1.6%
Chesterfield County IDA PCR
(Virginia Electric & Power
Company Project) Series 1985 MB
4.10% 05/08/95 1,000 1,000,000
Virginia Housing Development
Authority (Commonwealth Mortgage
Project) Series 1993I, Subseries
I-Stem MB
4.20% 05/11/95 2,500 2,500,000
-----------
3,500,000
-----------
WASHINGTON -- 4.6%
Washington Public Power Supply
System (Nuclear Project No. 3)
Refunding Series 3A-2 DN
4.25%** 04/07/95 10,400 10,400,000
-----------
WISCONSIN -- 1.2%
Oak Creek PCR (Wisconsin
Electric Power Company Project)
Series 1986 DN
4.20%** 04/07/95 2,700 2,700,000
-----------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $224,892,411*) 99.7% $224,892,411
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.3% 672,187
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 34,751,840
Institutional shares,
190,819,260
Service shares, and 28,814
Series A Investor shares
outstanding) 100.0% $225,564,598
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
SERIES A INVESTOR SHARE
($225,564,598 / 225,599,914) $1.00
=====
</TABLE>
- -------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1995, and the maturities shown are
the longer of the next interest readjustment date or the date the principal
amount owed can be recovered through demand.
See accompanying notes to financial statements.
9
<PAGE> 10
THE PNC(R) FUND
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
AGENCY OBLIGATIONS -- 51.3%
FEDERAL FARM CREDIT BANK NOTES -- 5.1%
6.20% 04/07/95 $10,000 $ 10,000,000
5.84% 05/17/95 12,000 11,910,453
6.05% 06/01/95 10,000 10,000,000
------------
31,910,453
------------
FEDERAL HOME LOAN BANK
CONSOLIDATED NOTES -- 11.3%
5.57% 04/19/95 13,000 12,963,795
6.00% 04/28/95 20,000 19,910,000
6.06% 04/28/95 15,000 14,931,825
5.97% 07/03/95 12,360 12,169,378
6.787% 02/15/96 10,000 10,009,104
------------
69,984,102
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION DISCOUNT
NOTES -- 17.9%
5.90% 04/03/95 55,000 54,981,972
6.00% 04/03/95 6,090 6,087,970
5.90% 04/04/95 50,000 49,975,417
------------
111,045,359
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT
NOTES -- 13.0%
6.02% 06/12/95 20,000 19,759,200
6.41% 06/12/95 17,000 16,782,060
5.97% 06/20/95 25,000 24,668,333
5.95% 06/26/95 20,000 19,715,722
------------
80,925,315
------------
TENNESSEE VALLEY AUTHORITY -- 4.0%
5.92% 04/06/95 25,000 24,979,444
------------
TOTAL AGENCY OBLIGATIONS
(Cost $318,844,673) 318,844,673
------------
VARIABLE RATE OBLIGATIONS -- 22.8%
FEDERAL HOME LOAN BANK CONSOLIDATED DISCOUNT NOTES -- 5.6%
6.20%** 04/03/95 25,000 24,995,004
6.0925%** 05/02/95 10,000 9,994,133
------------
34,989,137
------------
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
VARIABLE RATE OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE ASSOCIATION
NOTES -- 7.2%
6.16%** 04/03/95 $25,000 $ 25,000,000
6.07%** 04/04/95 20,000 20,000,000
------------
45,000,000
------------
STUDENT LOAN MARKETING ASSOCIATION
NOTES -- 10.0%
6.00%** 04/04/95 5,000 5,000,000
6.01%** 04/04/95 10,000 9,997,551
6.02%** 04/04/95 6,000 6,000,000
6.04%** 04/04/95 5,000 5,001,926
6.12%** 04/04/95 5,500 5,500,950
6.17%** 04/04/95 20,600 20,654,204
6.195%** 04/04/95 4,000 4,009,358
6.245%** 04/04/95 5,825 5,852,449
------------
62,016,438
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $142,005,575) 142,005,575
------------
REPURCHASE AGREEMENTS -- 26.1%
Lehman Government Securities,
Inc.
6.50% 04/03/95 36,900 36,900,000
(Agreement dated 03/31/95 to
be repurchased at
$36,919,987. Collateralized
by 41,270,181 Federal Home
Loan Bank and Federal Home
Loan Mortgage Corporation
Notes, 3.785% to 12.5% due
12/01/15 to 02/01/24. The
market value of the
collateral is $37,952,546).
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
GOVERNMENT MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
Morgan Stanley & Co.
6.40% 04/03/95 $75,000 $ 75,000,000
(Agreement dated 03/31/95 to
be repurchased at
$75,040,000. Collateralized
by 102,899,221 Federal
National Mortgage
Association, 5.5% to 9.5% due
01/01/06 to 03/01/25. The
market value of the
collateral is $77,261,569).
First Boston Corporation
6.03% 04/10/95 50,000 50,000,000
------------
(Agreement dated 03/09/95
to be repurchased at
$50,268,000. Collateralized
by 89,055,000. Federal
National Mortgage Association
and Federal Home Loan
Mortgage Corporation, 5.791%
to 6.399% due 11/01/23 to
06/01/29. The market value of
the collateral is
$88,685,121).
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL REPURCHASE AGREEMENTS
(Cost $161,900,000) $161,900,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $622,750,248*) 100.2% 622,750,248
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.2%) (1,287,160)
------- ------------
NET ASSETS (Equivalent to $1.00 per share
based on 113,704,861 Institutional
shares, 505,347,225 Service shares and
2,399,857 Series A Investor shares
outstanding) 100.0% $621,463,088
======= ============
NET ASSET VALUE OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
SERIES A INVESTOR SHARE
($621,463,088 / 621,451,943) $1.00
=====
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1995 and the maturities shown are
the longer of the next interest readjustment date or the date the principal
amount owed can be recovered through demand.
See accompanying notes to financial statements.
11
<PAGE> 12
THE PNC(R) FUND
OHIO MUNICIPAL MONEY MARKET
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
OHIO -- 97.9%
Clermont County Hospital
Facilities (Mercy Health Care
System Project) Series 1985B DN
4.00%** 04/07/95 $ 294 $ 294,000
Erie County IDRB (Brighton Manor
Company Project) Series 1986 DN
4.45%** 04/07/95 3,000 3,000,000
Evendale IDRB (SHV Real Estate,
Inc. Project) Series 1985 DN
4.15%** 04/07/95 1,700 1,700,000
Findlay Water Series 1984 DN
3.85%** 04/03/95 6,500 6,500,000
Franklin County IDRB (Alco
Standard Corp. Project) Series
1994 DN
4.35%** 04/07/95 2,000 2,000,000
Lucas County IDRB (Vega
Industries, Inc. Project) Series
1995 DN
4.50%** 04/07/95 2,300 2,300,000
Montgomery County BAN Series 1994B
4.50% 04/27/95 2,000 2,000,980
Montgomery County Hospital (Miami
Valley Hospital Project) Series
1985B TECP
3.65% 04/05/95 1,000 1,000,000
Montgomery County Hospital (Miami
Valley Hospital Project) Series
1985C TECP
4.20% 05/02/95 2,000 2,000,000
Muskingum County Hospital
Facilities (Bethesda Care Systems
Project) Series 1991 DN
4.25%** 04/07/95 1,900 1,900,000
Ohio Air Quality Development
Authority (Cincinnati Gas &
Electric Project) Series 1985
TECP
4.10% 04/03/95 2,000 2,000,000
Ohio Air Quality Development
Authority (Duquesne Light Co.
Project) Series 1988 MB
3.80% 04/06/95 2,000 2,000,000
Ohio Air Quality Development
Authority (JMG Funding L.P.
Project) Series 1994B DN
4.25%** 04/05/95 200 200,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
OHIO (CONTINUED)
Ohio Air Quality Development
Authority (PPG Industries, Inc.
Project) Series 1988A DN
4.15%** 04/07/95 $ 500 $ 500,000
Ohio Air Quality Development
Authority (Timken Co. Project)
Series 1992 DN
4.15%** 04/05/95 100 100,000
Ohio GO MB Series 1995
4.50% 08/01/95 3,000 3,000,000
Ohio Housing Finance Agency
Multifamily Housing (Lincoln Park
Assoc. Project) Series 1985 MB
3.95% 05/01/95 650 650,000
Ohio State Environmental
Improvement PCRB (U.S. Steel
Corp. Project) Series 1986 DN
4.30%** 04/07/95 1,000 1,000,000
Ohio State IDRB (Anomatic Corp.
Project) Series 1994 DN
4.50%** 04/06/95 1,000 1,000,000
Ohio Water Development Authority
PCRB (Cleveland Electric
Illuminating Co. Project) Series
1988A TECP
4.15% 04/03/95 2,000 2,000,000
Ohio Water Development Authority
PCRB (Duquesne Light Co. Project)
Series 1988 MB
3.80% 04/04/95 1,600 1,600,000
4.15% 05/11/95 3,050 3,050,000
Ohio Water PCRB (Ohio Edison
Company Project) Series 1988B MB
4.25% 09/01/95 1,750 1,750,000
Olmstead Falls School District BAN
Series 1995
5.00% 05/31/95 1,500 1,501,865
Sandusky County IDRB (Brighton
Manor Co. Project) Series 1986 DN
4.45%** 04/07/95 1,000 1,000,000
Student Loan Funding Corporation
Series 1983A DN
4.20%** 04/07/95 1,100 1,100,000
Student Loan Funding Corporation
Series 1990A-3 DN
4.30%** 04/07/95 1,900 1,900,000
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 13
OHIO MUNICIPAL MONEY MARKET
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
OHIO (CONTINUED)
Student Loan Funding Corporation
Series 1990A-1 DN
4.30%** 04/07/95 $1,000 $ 1,000,000
Student Loan Funding Corporation
Series 1990A-2 DN
4.30%** 04/07/95 1,000 1,000,000
Summit County IDRB (Austin
Printing Company, Inc. Project)
Series 1994 DN
4.50%** 04/07/95 650 650,000
Summit County IDRB (Forest
Manufacturing Project) Series
1994 DN
4.50%** 04/06/95 500 500,000
Summit County IDRB (Steffen
Bookbinders Project) Series 1991
DN
4.50%** 04/07/95 200 200,000
Toledo-Lucas County Port Authority
(CSX Transportation, Inc.
Project) Series 1992 TECP
3.65% 04/11/95 2,000 2,000,000
Toledo City Services Special
Assessment Notes Series 1994 MB
4.80% 07/27/95 2,500 2,503,920
West Clermont School District BAN
5.25% 08/09/95 1,800 1,803,465
Westlake Economic Development
(Oaks Development Company
Project) Series 1994 DN
4.35%** 04/07/95 2,020 2,020,000
Wooster IDRB (Allen Group, Inc.
Project) Series 1985 DN
4.05%** 04/05/95 200 200,000
-----------
58,924,230
-----------
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
PUERTO RICO -- 0.3%
Puerto Rico Government Development
Bank Series 1985 DN
4.10%** 04/07/95 $ 200 $ 200,000
-----------
VIRGIN ISLANDS -- 1.7%
Virgin Islands Housing Finance
Authority Single Family Revenue
Series 1995B MB
4.375% 02/01/96 1,000 1,000,000
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $60,124,230*) 99.9% 60,124,230
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 64,569
------ -----------
NET ASSETS (Equivalent to $1.00 per
share based on 12,191,502
Institutional shares, 47,994,948
Service shares and 4,634 Series A
Investor shares outstanding). 100.0% $60,188,799
====== ===========
NET ASSET VALUE OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND SERIES
A INVESTOR SHARE
($60,188,799 / 60,191,084) $1.00
=====
</TABLE>
- -------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1995, and the maturities shown are
the longer of the next interest readjustment date or the date the principal
amount owed can be recovered through demand.
See accompanying notes to financial statements.
13
<PAGE> 14
THE PNC(R) FUND
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
PENNSYLVANIA -- 95.1%
Allegheny County (Duquesne Light
Co. Project) Series 1992 MB
4.75% 11/30/95 $ 6,000 $ 6,000,000
Allegheny County (Duquesne Light
Co. Project) Series 1990 MB
4.40% 12/07/95 5,000 5,000,000
Allegheny County Higher
Education Building Authority
(University of Pittsburgh
Project) Series 1985C DN
4.025%** 04/07/95 360 360,000
Allegheny County IDA (Duquesne
Light Co. Project) Series 1992A
MB
4.80% 10/17/95 2,000 2,000,000
Beaver County IDA PCRB (Duquesne
Light Co. Project) Series 1990A
DN
4.25%** 04/07/95 5,100 5,100,000
Beaver County IDA PCRB (Duquesne
Light Co. Project) Series 1990B
DN
4.25%** 04/07/95 4,500 4,500,000
Beaver County IDA PCRB (Duquesne
Light Co. Project) Series 1990C
MB
4.00% 05/12/95 2,500 2,500,000
Beaver County IDA PCRB (Duquesne
Light Co. Project) Series 1993A
MB
4.35% 04/13/95 1,500 1,500,000
4.30% 05/12/95 2,000 2,000,000
4.45% 05/12/95 300 300,000
4.35% 08/09/95 4,900 4,900,000
Beaver County IDA PCRB (Toledo
Edison Co. Project) Series
1992E MB
4.20% 05/03/95 3,250 3,250,000
Bedford County IDA IDRB (Sepa,
Inc. Facility Project) Series
1985 DN
4.05%** 04/07/95 2,000 2,000,000
Berks County IDA Commercial
Development (Sixth and Penn
Street Project) Series 1988 DN
4.20%** 04/07/95 300 300,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
PENNSYLVANIA -- (CONTINUED)
Bradford County IDA Commercial
Development (Guthrie Inn
Project) Series 1984 DN
4.10%** 04/03/95 $ 2,200 $ 2,200,000
Bucks County IDA (SHV Real
Estate, Inc. Project) Series
1985 DN
4.15%** 04/07/95 1,300 1,300,000
Bucks County IDA (Sunstrand
Corp. Project) Series 1991 DN
4.25%** 04/07/95 1,505 1,505,000
Cambria County IDA Resource
Recovery (Cambria Cogen Co.
Project) Series 1989V-1 DN
4.25%** 04/07/95 1,700 1,700,000
Cambria County IDA Resource
Recovery (Cambria Cogen Co.
Project) Series 1989V-2 DN
4.25%** 04/07/95 100 100,000
Cambria County IDA Resource
Recovery (Cambria Cogen Co.
Project) Series 1991V-1 DN
4.25%** 04/07/95 4,400 4,400,000
Carbon County IDA Resource
Recovery (Panther Creek Partner
Project) Series 1990A MB
4.15% 04/10/95 300 300,000
4.20% 04/12/95 2,000 2,000,000
4.35% 04/13/95 2,000 2,000,000
4.00% 05/09/95 500 500,000
3.95% 05/10/95 750 750,000
4.45% 05/12/95 2,810 2,810,000
4.30% 05/26/95 1,200 1,200,000
4.15% 06/09/95 1,355 1,355,000
4.35% 08/08/95 2,550 2,550,000
4.35% 08/09/95 1,400 1,400,000
4.40% 08/15/95 5,000 5,000,000
Cumberland County IDA IDRB (Lane
Enterprises, Inc. Project)
Series 1994 DN
4.75%** 04/07/95 1,000 1,000,000
Cumberland County Municipal
Authority (Presbyterian Homes
Project) Series 1993A DN
4.125%** 04/07/95 6,000 6,000,000
Delaware County IDA
(Philadelphia Electric Co.
Project) 1988C MB
3.75% 05/11/95 1,000 1,000,000
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 15
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
PENNSYLVANIA -- (CONTINUED)
Delaware County IDA PCRB
4.30% 04/21/95 $ 2,000 $ 2,000,000
4.00% 05/01/95 900 900,000
4.20% 05/11/95 4,200 4,200,000
4.00% 05/19/95 1,300 1,300,000
Delaware County IDA Solid Waste
(Scott Paper Co. Project)
Series 1984A DN
4.30%** 04/07/95 2,000 2,000,000
Delaware County IDA Solid Waste
(Scott Paper Co. Project)
Series 1984B DN
4.30%** 04/07/95 2,500 2,500,000
Delaware County IDA Solid Waste
(Scott Paper Co. Project)
Series 1984C DN
4.30%** 04/07/95 5,400 5,400,000
Delaware County IDA Solid Waste
(Scott Paper Co. Project)
Series 1984D DN
4.25%** 04/07/95 1,200 1,200,000
Delaware County IDA Solid Waste
(Scott Paper Co. Project)
Series 1984E DN
4.25%** 04/07/95 5,300 5,300,000
East Hempfield Township IDA
(Yellow Freight System, Inc.
Project) Series 1985 DN
4.25%** 04/07/95 500 500,000
Emmaus General Authority Pooled
Loan Series 1989C DN
4.25%** 04/07/95 2,800 2,800,000
Emmaus General Authority Pooled
Loan Series 1989D DN
4.25%** 04/07/95 7,600 7,600,000
Emmaus General Authority Pooled
Loan Series 1989H DN
4.25%** 04/07/95 5,000 5,000,000
Harrisburg Redevelopment
Authority Multifamily Housing
(Washington Square Apartments
Project) Series 1985 DN
3.95%** 04/07/95 4,500 4,500,000
Lehigh County Authority Water
Series 1984 DN
4.10%** 04/07/95 6,545 6,545,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
PENNSYLVANIA -- (CONTINUED)
Lehigh County IDA PCRB
(Allegheny Electric Co-op, Inc.
Project) Series 1985A DN
4.15%** 04/07/95 $ 100 $ 100,000
Lehigh County Sewer Authority
Series 1985B DN
4.10%** 04/07/95 180 180,000
Littlestown IDA (Hanover House
Industries Project) Series 1987
DN
4.30%** 04/07/95 2,000 2,000,000
Montgomery County IDA (PECO
Energy Project) TECP
3.85% 04/27/95 1,000 1,000,000
Montgomery County Higher
Education & Health Authority
Hospital Series 1988 DN
4.10%** 04/07/95 4,800 4,800,000
Montgomery County IDA
(Philadelphia Electric Co.
Project) Series 1994A MB
3.90% 06/01/95 2,000 2,000,000
Montgomery County IDA (Three
Valley Square Associates
Project) Series 1987 DN
4.20%** 04/07/95 2,800 2,800,000
Northampton County IDA IDRB
(Citizens Utility Project)
Series 1991 MB
4.00% 06/08/95 2,000 2,000,000
Northeastern Pennsylvania
Hospital & Education Authority
(Wyoming Valley Health Care
Project) Series 1994A DN
4.10%** 04/07/95 4,000 4,000,000
Northumberland County IDA
Resource Recovery (Foster
Wheeler Mt. Carmel Project)
Series 1987A DN
4.40%** 04/07/95 4,000 4,000,000
Northumberland County IDA
Resource Recovery (Foster
Wheeler Mt. Carmel Project)
Series 1987B DN
4.40%** 04/07/95 590 590,000
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 16
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
PENNSYLVANIA -- (CONTINUED)
Pennsylvania Commonwealth TRAN
4.75% 06/30/95 $15,850 $ 15,879,627
Pennsylvania Energy Development
Authority (B&W Ebensburg Pro-
ject) Series 1988 DN
4.25%** 04/07/95 2,800 2,800,000
Pennsylvania Energy Development
Authority (Piney Creek Project)
Series 1986A DN
4.25%** 04/05/95 6,550 6,550,000
Pennsylvania Energy Development
Authority (Piney Creek Project)
Series 1986C DN
4.25%** 04/07/95 2,700 2,700,000
Pennsylvania Energy Development
Authority (B&W Ebensburg
Project) Series 1986 DN
4.25%** 04/07/95 3,590 3,590,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1994A DN
4.20%** 04/05/95 5,000 5,000,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1984A DN
3.85%** 04/07/95 1,500 1,500,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1988A DN
4.20%** 04/07/95 7,800 7,800,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1988B DN
4.20%** 04/07/95 2,620 2,620,000
Pennsylvania Higher Education
Assistance Agency Student Loan
Series 1988C DN
4.20%** 04/07/95 6,500 6,500,000
Pennsylvania Higher Education
Facility Authority (Temple
University Project) Series 1984
DN
3.24%** 04/01/95 2,000 2,000,000
Philadelphia Authority IDRB
(Commercial Development Airport
Hotel Project) Series 1990 DN
4.15%** 04/07/95 1,400 1,400,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
PENNSYLVANIA -- (CONTINUED)
Philadelphia Gas Works TECP
3.85% 05/09/95 $ 1,800 $ 1,800,000
4.00% 08/01/95 6,000 6,000,000
Philadelphia GO Series 1990 MB
4.15% 04/06/95 5,000 5,000,000
4.05% 06/09/95 1,000 1,000,000
Philadelphia Hospital & Higher
Educational Facility Authority
(Frankford Hospital Project)
Series 1993B DN
4.20%** 04/07/95 2,400 2,400,000
Philadelphia IDA (30th Street
Station Project) Series 1987 DN
3.50%** 04/07/95 3,000 3,000,000
Philadelphia TRAN Series A
4.75% 06/15/95 1,000 1,001,405
Quakertown General Authority
Health Facilities (Lifequest &
Affiliates Project) Series 1991
DN
4.05%** 04/07/95 2,900 2,900,000
Radnor Township GO TRAN
6.00% 12/29/95 1,500 1,510,675
Sayre Health Care Facility
Authority (VHA Capital
Financing Project) Series 1985A
DN
4.00%** 04/07/95 1,300 1,300,000
Sayre Health Care Facility
Authority (VHA Capital
Financing Project) Series 1985B
DN
4.00%** 04/07/95 5,235 5,235,000
Sayre Health Care Facility
Authority (VHA Capital
Financing Project) Series 1985F
DN
4.00%** 04/07/95 3,200 3,200,000
Sayre Health Care Facility
Authority (VHA Capital
Financing Project) Series 1985I
DN
4.00%** 04/07/95 2,600 2,600,000
Sayre Health Care Facility
Authority (VHA Capital
Financing Project) Series 1985J
DN
4.00%** 04/07/95 4,500 4,500,000
Sayre Health Care Facility
Authority (VHA Capital
Financing Project) Series 1985K
DN
4.00%** 04/07/95 3,400 3,400,000
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 17
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
PENNSYLVANIA -- (CONTINUED)
Schuylkill County IDA Resource
Recovery (Gilberton Power Pro-
ject) Series 1985 DN
4.25%** 04/07/95 $ 8,700 $ 8,700,000
Schuylkill County IDA Resource
Recovery (Northeastern Power
Co. Project) Series 1986B DN
4.60%** 04/01/95 22,600 22,600,000
St. Mary Hospital Authority
(Franciscan Health System
Project) Series 1985A DN
4.60%** 04/01/95 400 400,000
St. Mary Hospital Authority
(Franciscan Health System
Project) Series 1985B DN
4.60%** 04/01/95 500 500,000
University of Pittsburgh
Commonwealth System of Higher
Education (University Capital
Project) Series 1989A DN
3.90%** 04/07/95 500 500,000
Venango IDA Resource Recovery
Series 1993 MB
4.15% 04/10/95 910 910,000
4.35% 04/13/95 3,150 3,150,000
4.00% 05/09/95 1,475 1,475,000
4.30% 05/12/95 950 950,000
4.45% 05/12/95 1,300 1,300,000
4.15% 06/09/95 1,300 1,300,000
4.30% 08/04/95 2,300 2,300,000
4.35% 08/09/95 1,500 1,500,000
Washington County Authority
Lease Series 1985 DN
4.25%** 04/05/95 4,400 4,400,000
York County IDA PCRB
(Philadelphia Electric Co.)
Series 1993A DN
4.15%** 04/07/95 2,000 2,000,000
------------
309,166,707
------------
PUERTO RICO -- 4.7%
Puerto Rico Government
Development Bank Refunding
Series 1985 DN
4.10%** 04/07/95 500 500,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
PUERTO RICO -- (CONTINUED)
Puerto Rico Industrial Medical
and Higher Education and
Environmental Pollution Control
Facilities Authority (Ana G.
Mendez Foundation Project)
Series 1985 DN
4.05%** 04/07/95 $ 2,800 $ 2,800,000
Puerto Rico Industrial Medical
and Higher Education and
Environmental Pollution Control
Facilities Authority
(InterAmerican University of
Puerto Rico Project)
Series 1988 MB
4.20% 04/13/95 1,700 1,700,000
3.95% 05/01/95 1,000 1,000,000
Puerto Rico Industrial Medical
and Higher Education and
Environmental Pollution Control
Facilities Authority (Reynolds
Metals Co. Project) MB
4.00% 09/01/95 600 600,245
Puerto Rico Maritime Shipping
Authority TECP
3.85% 04/19/95 8,800 8,800,000
------------
15,400,245
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $324,566,952*) 99.8% 324,566,952
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.2% 693,203
------- ------------
NET ASSETS (Equivalent to $1.00
per share based on 187,857,855
Institutional shares,
137,296,821 Service shares and
105,349 Series A Investor shares
outstanding). 100.0% $325,260,155
======= ============
NET ASSET VALUE OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
SERIES A INVESTOR SHARE
($325,260,155 / 325,260,025) $1.00
=====
</TABLE>
- -------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1995, and the maturities shown are
the longer of the next interest readjustment date or the date the principal
amount owed can be recovered through demand.
See accompanying notes to financial statements.
17
<PAGE> 18
THE PNC(R) FUND
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
NORTH CAROLINA -- 86.4%
Asheville Certificates of
Participation Series 1993A DN
3.85%** 04/07/95 $1,500 $ 1,500,000
Bladen County Industrial
Facilities and Pollution Control
Financing Authority Industrial
(Harriet and Henderson Yarns)
Series 1993 DN
4.45%** 04/07/95 775 775,000
Bladen County Industrial
Facilities and Pollution Control
Financing Authority Resource
Recovery (BCH Energy L.P.
Project) Series 1993 DN
4.00%** 04/07/95 2,000 2,000,000
Catawba County Industrial
Facilities and Pollution Control
Financing Authority (WSMP, Inc.
Project) Series 1992 DN
4.45%** 04/07/95 500 500,000
Charlotte Airport Revenue
Refunding Series 1993A DN
4.15%** 04/07/95 5,500 5,500,000
Cumberland County GO Series 1994
MB
4.90% 04/03/95 125 125,000
Durham County Public Improvement
Series 1993 DN
4.05%** 04/07/95 2,350 2,350,000
Durham Public Improvement Series
1993 DN
4.05%** 04/07/95 3,535 3,535,000
Greensboro Certificates of
Participation (Greensboro
Coliseum Complex Improvement
Project) Series 1995A DN
4.00%** 04/07/95 1,600 1,600,000
Greensboro Public Improvement
Series 1994B DN
4.25%** 04/07/95 850 850,000
Haywood County Industrial
Facilities and Pollution Control
Financing Authority (Champion
International Corporation
Project) Series 1995 DN
4.05%** 04/07/95 2,200 2,200,000
Mecklenburg County GO DN
4.10%** 04/07/95 500 500,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
NORTH CAROLINA -- (CONTINUED)
Mecklenburg County GO DN
4.10%** 04/07/95 $2,000 $ 2,000,000
Mecklenburg County Industrial
Facilities and Pollution Control
Financing Authority Industrial
(Otto Industries, Inc. Project)
Series 1988 DN
4.45%** 04/07/95 1,200 1,200,000
New Hanover County Industrial
Facilities and Pollution Control
Financing Authority (Interroll
Corp. Project) Series 1989 DN
4.45%** 04/06/95 1,395 1,395,000
North Carolina Eastern Municipal
Power Agency Power System
Revenue Series 1988B MB
4.25% 05/01/95 2,100 2,100,000
3.95% 06/08/95 1,500 1,500,000
North Carolina Eastern Municipal
Power Agency TECP
3.80% 05/23/95 2,000 2,000,000
4.00% 06/08/95 1,071 1,071,000
North Carolina Education
Facilities Finance Agency (The
Bowman Gray School of Medicine
Project) Series 1990 DN
4.10%** 04/07/95 4,600 4,600,000
North Carolina Educational
Facilities Finance Agency (Duke
University Project) Series 1987A
DN
4.075%** 04/07/95 1,100 1,100,000
North Carolina Educational
Facilities Finance Agency (Duke
University Project) Series 1991B
DN
4.075%** 04/07/95 5,100 5,100,000
North Carolina Industrial
Facilities and Pollution Control
Financing Authority Qualified
Small Issue Industrial (GVK
America, Inc. Project) Series
1990 MB
5.00% 12/01/95 2,970 2,970,000
North Carolina Medical Care
Commission (Baptist Hospital
Project) Series 1992B DN
4.10%** 04/07/95 5,600 5,600,000
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 19
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
NORTH CAROLINA -- (CONTINUED)
North Carolina Medical Care
Commission (Pooled Equipment
Financing Project)
Series 1985 DN
4.20%** 04/07/95 $ 800 $ 800,000
North Carolina Medical Care
Commission (Pooled Financing
Project) Series 1991B DN
4.55%** 04/03/95 2,100 2,100,000
North Carolina Medical Care
Commission Refunding (Moses H.
Cone Memorial Hospital Project)
Series 1993 DN
4.10%** 04/07/95 5,100 5,100,000
North Carolina Medical Care
Community Hospital Access
(Pooled Financing Project)
Series 1991A DN
4.55%** 04/03/95 2,800 2,800,000
North Carolina Municipal Power
Agency (Catawba Project) TECP
4.20% 04/17/95 2,000 2,000,000
4.15% 05/31/95 3,000 3,000,000
Person County Industrial
Facilities and Pollution Control
Financing Authority (Carolina
Power & Light Project) Series
1986 DN
4.40%** 04/03/95 1,600 1,600,000
Person County Industrial
Facilities and Pollution Control
Financing Authority (Carolina
Power & Light Project) Series
1992 DN
4.30%** 04/07/95 7,700 7,700,000
Surry County GO Series 1995 BAN
4.25% 10/25/95 3,680 3,682,422
Union County Industrial
Facilities and Pollution Control
Financing Authority IDR (Square
D Company Project) Series 1988
DN
4.125%** 04/07/95 2,000 2,000,000
University of North Carolina
Chapel Hill (School of Medicine
Ambulatory Care Clinic) Series
1990 TECP
4.00% 04/07/95 1,000 1,000,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
NORTH CAROLINA -- (CONTINUED)
Wake County Industrial Facilities
and Pollution Control Financing
Authority (Carolina Power &
Light Project) Series 1985B DN
4.20%** 04/07/95 $6,900 $ 6,900,000
Wake County Industrial Facilities
and Pollution Control Financing
Authority (Carolina Power &
Light Project) Series 1985C DN
4.20%** 04/07/95 4,400 4,400,000
Wake County Industrial Facilities
and Pollution Control Financing
Authority (Carolina Power &
Light Project) Series 1990 TECP
4.20% 05/10/95 1,000 1,000,000
4.20% 05/30/95 2,000 2,000,000
Wilson County Industrial
Facilities Pollution Control
Financing Authority Industrial
(Chip Project) Series 1989 DN
4.45%** 04/07/95 1,000 1,000,000
Winston-Salem Certificates of
Participation (Risk Acceptance
Management Corp.) Series 1988 DN
4.30%** 04/07/95 500 500,000
Winston-Salem Water and Sewer
System Series 1994 DN
4.10%** 04/07/95 2,800 2,800,000
------------
102,453,422
------------
PUERTO RICO -- 12.7%
Puerto Rico Government
Developmental Bank Refunding
Series 1985 DN
4.10%** 04/07/95 9,000 9,000,000
Puerto Rico Industrial Medical
and Environmental Higher
Education and Pollution Control
Finance Authority
(Inter-American University of
Puerto Rico Project) Series 1988
TECP
3.65% 05/11/95 2,300 2,300,000
</TABLE>
See accompanying notes to financial statements.
19
<PAGE> 20
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
PUERTO RICO (CONTINUED)
Puerto Rico Industrial Medical
and Higher Education
Environmental and Pollution
Control Facilities Funding
Authority (Ana G. Mendez
Project) Series 1985 DN
4.05%** 04/07/95 $3,800 $ 3,800,000
------------
15,100,000
------------
VIRGIN ISLANDS -- 0.8%
Virgin Islands Housing Finance
Authority Single Family Revenue
Series 1995B MB
4.375% 02/01/96 1,000 1,000,000
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $118,553,422*) 99.9% 118,553,422
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 80,035
------ ------------
<CAPTION>
VALUE
------------
<S> <C> <C>
NET ASSETS (Equivalent to $1.00 per
share based on 118,224,341
Institutional shares, 406,625
Service shares and 2,603 Series A
Investor shares outstanding). 100.0% $118,633,457
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL,
SERVICE AND SERIES A INVESTOR
SHARE
($118,633,457 / 118,633,569) $1.00
=====
</TABLE>
- -------------
* Aggregate cost for Federal tax purposes.
** Rates shown are the rates as of March 31, 1995, and the maturities shown are
the longer of the next interest readjustment date or the date the principal
amount owed can be recovered through demand.
See accompanying notes to financial statements.
20
<PAGE> 21
THE PNC(R) FUND
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
VIRGINIA -- 94.8%
Alexandria IDA Adjustable Tender
Resource Recovery (Alexandria
Arlington Waste-to-Energy
Facility) Series 1986A DN
4.70%** 04/03/95 $ 700 $ 700,000
Arlington County GO Pre-refunded
Series 1985 MB
9.00% 06/01/95 250 253,360
Charles County IDA Solid Waste
(Chambers Development Virginia
Project) Series 1989 DN
4.45%** 04/07/95 500 500,000
Chesterfield County IDA PCR
(Virginia Electric & Power Co.)
Series 1985 MB
4.25% 05/11/95 500 500,000
Culpeper IDA (Baptist Homes)
Series 1992 DN
4.30%** 04/07/95 1,000 1,000,000
Fairfax County IDA (Fairfax
Hospital System, Inc.) Series
1988C DN
4.10%** 04/07/95 300 300,000
Greensville County IDA (Perdue
Farms, Inc. Project) Series 1986
DN
4.35%** 04/03/95 600 600,000
Hanover County IDA (Carter
Machine Company Project) Series
1983 DN
4.30%** 04/05/95 600 600,000
Henrico County IDA (Cedarfield
Hermitage Project) Series 1994
DN
4.50%** 04/03/95 700 700,000
Henrico County IDA (Monument
Association Urology Labs) Series
1988 DN
4.30%** 04/07/95 330 330,000
Henrico County IDA (Strawberry
Hill Outdoor Amphitheatre)
Series 1991 DN
4.30%** 04/07/95 388 388,000
Louisa IDA PCR (Virginia Electric
& Power Co.) Series 1984 MB
4.00% 05/26/95 1,000 1,000,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
Lynchburg IDA Hospital Facilities
(VHA Mid-Atlantic States Capital
Asset Finance Program) Series
1985C DN
4.10%** 04/07/95 $ 300 $ 300,000
Lynchburg IDA Hospital Facilities
(VHA Mid-Atlantic States Capital
Asset Finance Program) Series
1985E DN
4.10%** 04/07/95 1,000 1,000,000
Norfolk GO Series 1985 MB
8.50% 04/03/95 200 200,030
Norfolk IDA (Sentara Hospitals --
Norfolk Project) Series 1990A MB
4.05% 05/15/95 600 600,000
Peninsula Port Authority of
Virginia Coal Terminal (Dominion
Terminal Associates Project)
Series 1987D DN
4.60%** 04/03/95 2,100 2,100,000
Peninsula Port Authority of
Virginia IDA (Kinyo Virginia,
Inc. Project) Series 1988 DN
4.60%** 04/03/95 700 700,000
Peninsula Port Authority of
Virginia Port Facility (CSX
Transportation, Inc. Project)
Series 1992 TECP
3.85% 05/01/95 1,000 1,000,000
Peninsula Port Authority of
Virginia Port Facility (Shell
Coal and Terminal Company)
Series 1987 DN
4.45%** 04/03/95 800 800,000
Prince William County IDA PCR
(Virginia Electric & Power Co.)
Series 1986 MB
4.10% 05/01/95 300 300,000
Roanoke IDA Hospital (Carilion
Health System) Series 1992A DN
4.50%** 04/03/95 700 700,000
South Hill IDA (South Hill
Veneers, Inc. Project) Series
1987 DN
4.10%** 04/07/95 600 600,000
Southeastern Public Service
Authority (Regional Solid Waste
System) Series 1984A MB
10.50% 07/01/95 300 307,958
</TABLE>
See accompanying notes to financial statements.
21
<PAGE> 22
VIRGINIA MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
VIRGINIA -- (CONTINUED)
Virginia College Building
Authority (Equipment Leasing
Program) Series 1994 MB
4.10% 08/01/95 $ 400 $ 400,122
Virginia Housing Development
Authority (AHC Service
Corporation -- Woodbury Park
Project) Series 1987A MB
4.15%** 04/07/95 1,070 1,070,000
Virginia Housing Development
Authority Commonwealth Mortgage
Series 1993F Subseries F-Stem MB
3.90% 05/10/95 400 400,020
Virginia Housing Development
Authority Commonwealth Mortgage
Series 1993I Sub Series I-Stem
MB
4.20% 05/11/95 500 500,000
York County IDA PCR (Virginia
Electric & Power Co.) Series
1985 MB
4.10% 05/01/95 200 200,000
-----------
18,049,490
-----------
PUERTO RICO -- 4.2%
Government Development Bank
Series 1985 DN
4.10%** 04/07/95 200 200,000
Puerto Rico Maritime Shipping
Authority TECP
3.85% 04/19/95 600 600,000
-----------
800,000
-----------
<CAPTION>
VALUE
-----------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $18,849,490*) 99.0% $18,849,490
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.0% 184,825
------ -----------
NET ASSETS (Equivalent to $1.00 per
share based on 18,634,190
Institutional shares and 400,105
Service shares outstanding) 100.0% $19,034,315
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL
AND SERVICE SHARE
($19,034,315 / 19,034,295) $1.00
=====
</TABLE>
- -------------
* Aggregate cost for federal tax purposes.
** Rates shown are the rates as of March 31, 1995, and the
maturities shown are the longer of the next interest
readjustment date or the date the principal amount owed
can be recovered through demand.
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
BAN................ Bond Anticipation Note
DN................. Demand Note
GO................. General Obligation
IDA................ Industrial Development Authority
IDR................ Industrial Development Revenue
IDRB............... Industrial Development Revenue Bond
MB................. Municipal Bond
PCR................ Pollution Control Revenue
PCRB............... Pollution Control Revenue Bond
TAN................ Tax Anticipation Note
TECP............... Tax-Exempt Commercial Paper
TRAN............... Tax and Revenue Anticipation Note
</TABLE>
See accompanying notes to financial statements.
22
<PAGE> 23
THE PNC(R) FUND
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
OHIO PENNSYLVANIA
MUNICIPAL GOVERNMENT MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investment income:
Interest $36,312,611 $3,959,375 $16,188,882 $1,097,216 $6,315,344
------------ ------------ ------------ ------------ ------------
Expenses:
Investment advisory fee.................. 2,775,547 469,233 1,278,894 131,086 772,434
Administration fee....................... 844,302 156,411 417,822 43,695 257,478
Custodian fee............................ 107,268 30,200 51,225 10,710 37,701
Transfer agent fee....................... 21,219 18,712 24,932 11,234 10,686
Service fees............................. 924,049 260,837 761,644 66,976 170,233
Distribution fees........................ 11,985 84 4,673 67 316
Legal and audit.......................... 63,302 9,888 26,706 5,040 15,394
Printing................................. 44,741 6,409 17,241 4,466 13,560
Registration fees and expenses........... 49,196 22,483 51,719 1,247 13,828
Organization............................. 3,456 374 469 2,362 2,275
Trustees' fees and officer's salary...... 9,963 2,011 4,151 480 2,706
Other.................................... 20,982 2,787 10,143 931 3,567
------------ ------------ ------------ ------------ ------------
4,876,010 979,429 2,649,619 278,294 1,300,178
Less fees voluntarily waived and expenses
reimbursed............................. (2,361,082) (457,824) (1,172,805) (138,426) (700,499)
------------ ------------ ------------ ------------ ------------
Total expenses......................... 2,514,928 521,605 1,476,814 139,868 599,679
------------ ------------ ------------ ------------ ------------
Net investment income..................... 33,797,683 3,437,770 14,712,068 957,348 5,715,665
Net realized gain (loss) on investments... 19,382 (12,356) 6,023 -- --
------------ ------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations............................... $33,817,065 $3,425,414 $14,718,091 $ 957,348 $5,715,665
============ ============ ============ ============ ============
<CAPTION>
NORTH CAROLINA VIRGINIA
MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO
-------------- ------------
<S> <C> <C>
Investment income:
Interest $1,612,760 $270,624
-------------- ------------
Expenses:
Investment advisory fee.................. 197,127 34,404
Administration fee....................... 65,709 11,468
Custodian fee............................ 14,088 8,000
Transfer agent fee....................... 15,458 7,480
Service fees............................. 179 267
Distribution fees........................ 1 --
Legal and audit.......................... 5,558 1,005
Printing................................. 6,378 1,125
Registration fees and expenses........... 3,451 1,397
Organization............................. 2,837 2,738
Trustees' fees and officer's salary...... 639 119
Other.................................... 1,210 306
-------------- ------------
312,635 68,309
Less fees voluntarily waived and expenses
reimbursed............................. (242,460) (60,397)
-------------- ------------
Total expenses......................... 70,175 7,912
-------------- ------------
Net investment income..................... 1,542,585 262,712
Net realized gain (loss) on investments... -- --
-------------- ------------
Net increase in net assets resulting from
operations............................... $1,542,585 $262,712
============== ============
</TABLE>
See accompanying notes to financial statements.
23
<PAGE> 24
THE PNC(R) FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------- --------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31,1995 SEPTEMBER 30, MARCH 31,1995 SEPTEMBER 30,
(UNAUDITED) 1994 (UNAUDITED) 1994
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations
Net Investment income...................... $ 33,797,683 $ 33,422,550 $ 3,437,770 $ 3,835,438
Net gain (loss) on investment.............. 19,382 (16,921) (12,356) (19,387)
------------------ ------------------ ------------------ ------------------
Net increase in net assets resulting from
operations............................... 33,817,065 33,405,629 3,425,414 3,816,051
------------------ ------------------ ------------------ ------------------
Distributions to shareholders from
Net investment income
Institutional Shares....................... (17,684,158) (15,773,507) (608,174) (774,065)
Service Shares............................. (15,992,677) (17,580,544) (2,829,092) (3,060,695)
Series A Investor Shares................... (120,848) (68,499) (504) (678)
------------------ ------------------ ------------------ ------------------
Total distributions to shareholders...... (33,797,683) (33,422,550) (3,437,770) (3,835,438)
------------------ ------------------ ------------------ ------------------
Capital share transactions.................... 123,188,773 232,315,691 61,570,199 30,926,057
------------------ ------------------ ------------------ ------------------
Total increase in net assets............. 123,208,155 232,298,770 61,557,843 30,906,670
Net assets:
Beginning of period........................ 1,083,261,648 850,962,878 164,006,755 133,100,085
------------------ ------------------ ------------------ ------------------
End of period.............................. $1,206,469,803 $1,083,261,648 $225,564,598 $164,006,755
================== ================== ================== ==================
<CAPTION>
GOVERNMENT MONEY MARKET PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
MARCH 31,1995 SEPTEMBER 30,
(UNAUDITED) 1994
------------------ ------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations
Net Investment income...................... $ 14,712,068 $ 9,723,460
Net gain (loss) on investment.............. 6,023 13,624
------------------ ------------------
Net increase in net assets resulting from
operations............................... 14,718,091 9,737,084
------------------ ------------------
Distributions to shareholders from
Net investment income
Institutional Shares....................... (1,624,576) (1,018,580)
Service Shares............................. (13,041,461) (8,701,808)
Series A Investor Shares................... (46,031) (3,072)
------------------ ------------------
Total distributions to shareholders...... (14,712,068) (9,723,460)
------------------ ------------------
Capital share transactions.................... 209,449,309 213,031,001
------------------ ------------------
Total increase in net assets............. 209,455,332 213,044,625
Net assets:
Beginning of period........................ 412,007,756 198,963,131
------------------ ------------------
End of period.............................. $621,463,088 $412,007,756
================== ==================
</TABLE>
See accompanying notes to financial statements.
24
<PAGE> 25
THE PNC(R) FUND
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
OHIO MUNICIPAL PENNSYLVANIA MUNICIPAL
MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO
-------------------------------------- --------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31,1995 SEPTEMBER 30, MARCH 31,1995 SEPTEMBER 30,
(UNAUDITED) 1994 (UNAUDITED) 1994
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations
Net investment income...................... $ 957,348 $ 1,180,384 $ 5,715,665 $ 2,154,769
Net gain (loss) on investments............. -- (2,285) -- 130
------------------ ------------------ ------------------ ------------------
Net increase in net assets resulting from
operations............................... 957,348 1,178,099 5,715,665 2,154,899
------------------ ------------------ ------------------ ------------------
Distributions to shareholders from
Net investment income
Institutional Shares....................... (240,158) (343,817) (3,914,773) (1,675,898)
Service Shares............................. (716,793) (835,590) (1,799,051) (478,057)
Series A Investor Shares................... (397) (977) (1,841) (814)
------------------ ------------------ ------------------ ------------------
Total distributions to shareholders...... (957,348) (1,180,384) (5,715,665) (2,154,769)
------------------ ------------------ ------------------ ------------------
Capital share transactions.................... 5,574,273 27,351,445 106,459,075 207,640,309
------------------ ------------------ ------------------ ------------------
Total increase in net assets............. 5,574,273 27,349,160 106,459,075 207,640,439
Net assets:
Beginning of period........................ 54,614,526 27,265,366 218,801,080 11,160,641
------------------ ------------------ ------------------ ------------------
End of period.............................. $ 60,188,799 $ 54,614,526 $325,260,155 $218,801,080
================== ================== ================== ==================
<CAPTION>
NORTH CAROLINA MUNICIPAL
MONEY MARKET PORTFOLIO
--------------------------------------
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
MARCH 31,1995 SEPTEMBER 30,
(UNAUDITED) 1994
------------------ ------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations
Net investment income...................... $ 1,542,585 $ 1,405,051
Net gain (loss) on investments............. -- --
------------------ ------------------
Net increase in net assets resulting from
operations............................... 1,542,585 1,405,051
------------------ ------------------
Distributions to shareholders from
Net investment income
Institutional Shares....................... (1,540,603) (1,404,199)
Service Shares............................. (1,972) (852)
Series A Investor Shares................... (10) --
------------------ ------------------
Total distributions to shareholders...... (1,542,585) (1,405,051)
------------------ ------------------
Capital share transactions.................... 48,960,560 35,537,466
------------------ ------------------
Total increase in net assets............. 48,960,560 35,537,466
Net assets:
Beginning of period........................ 69,672,897 34,135,431
------------------ ------------------
End of period.............................. $118,633,457 $ 69,672,897
================== ==================
</TABLE>
See accompanying notes to financial statements.
25
<PAGE> 26
THE PNC(R) FUND
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL MONEY
MARKET PORTFOLIO
------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED JULY 25, 1994(1)
MARCH 31, 1995 THROUGH
(UNAUDITED) SEPTEMBER 30, 1994
-------------- ------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations
Net investment income..................................... $ 262,712 $ 57,403
Net gain on investments................................... -- 20
-------------- ----------------
Net increase in net assets resulting...................... 262,712 57,423
-------------- ----------------
Distributions to shareholders from net investment income
Institutional Shares...................................... (259,836) (57,403)
Service Shares............................................ (2,876) --
Series A Investor Shares.................................. -- --
-------------- ----------------
Total distributions to shareholders..................... (262,712) (57,403)
-------------- ----------------
Capital share transactions................................... 5,203,197 13,831,098
-------------- ----------------
Total increase in net assets............................ 5,203,197 13,831,118
Net assets:
Beginning of period....................................... 13,831,118 --
-------------- ----------------
End of period............................................. $ 19,034,315 $ 13,831,118
============== ================
</TABLE>
- ---------------
(1) Commencement of operations.
See accompanying notes to financial statements.
26
<PAGE> 27
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
--------------------------------- ---------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR 8/2/93(1) ENDED YEAR YEAR
3/31/95 ENDED THROUGH 3/31/95 ENDED ENDED
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED) 9/30/94 9/30/93
----------- -------- -------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- -------- -------- ----------- --------- ---------
Income from investment operations
Net investment income............................ 0.0274 0.0359 0.0054 0.0259 0.0333 0.0274
Net realized gain (loss) on investments.......... -- -- -- -- -- --
----------- -------- -------- ----------- --------- ---------
Total from investment operations............. 0.0274 0.0359 0.0054 0.0259 0.0333 0.0274
----------- -------- -------- ----------- --------- ---------
Less distributions
Distributions from net investment income......... (0.0274) (0.0359) (0.0054) (0.0259) (0.0333) (0.0274)
Distributions from net realized capital gains.... -- -- -- -- -- --
----------- -------- -------- ----------- --------- ---------
Total distributions.......................... (0.0274) (0.0359) (0.0054) (0.0259) (0.0333) (0.0274)
----------- -------- -------- ----------- --------- ---------
Net asset value at end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ======== ======== =========== ========= =========
Total return........................................ 2.77% 3.64% 0.54% 2.61% 3.37% 2.77%
Ratios/Supplemental data
Net assets at end of period (in thousands)....... $ 593,948 $502,972 $435,586 $ 605,220 $575,948 $415,328
Ratios of expenses to average net assets
After advisory/administration fee waivers...... 0.25%(2) 0.25% 0.27%(2) 0.55%(2) 0.51% 0.59%
Before advisory/administration fee waivers..... 0.62%(2) 0.66% 0.38%(2) 0.92%(2) 0.92% 0.70%
Ratios of net investment income to average net
assets
After advisory/administration fee waivers...... 5.51%(2) 3.64% 3.01%(2) 5.19%(2) 3.35% 2.73%
Before advisory/administration fee waivers..... 5.13%(2) 3.23% 2.90%(2) 4.82%(2) 2.95% 2.62%
<CAPTION>
MONEY MARKET PORTFOLIO
------------------------------
SERVICE CLASS
------------------------------
FOR THE
PERIOD
YEAR YEAR 10/4/89(1)
ENDED ENDED THROUGH
9/30/92 9/30/91 9/30/90
-------- -------- --------
<S> <C> <C> <C>
Net asset value at beginning of period.............. $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income from investment operations
Net investment income............................ 0.0391 0.0645 0.0778
Net realized gain (loss) on investments.......... -- -- --
-------- -------- --------
Total from investment operations............. 0.0391 0.0645 0.0778
-------- -------- --------
Less distributions
Distributions from net investment income......... (0.0391) (0.0645) (0.0778)
Distributions from net realized capital gains.... -- -- --
-------- -------- --------
Total distributions.......................... (0.0391) (0.0645) (0.0778)
-------- -------- --------
Net asset value at end of period.................... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total return........................................ 4.05% 6.64% 8.07%
Ratios/Supplemental data
Net assets at end of period (in thousands)....... $838,012 $637,076 $628,075
Ratios of expenses to average net assets
After advisory/administration fee waivers...... 0.61% 0.62% 0.62%(2)
Before advisory/administration fee waivers..... 0.66% 0.67% 0.70%(2)
Ratios of net investment income to average net
assets
After advisory/administration fee waivers...... 3.86% 6.45% 7.83%(2)
Before advisory/administration fee waivers..... 3.81% 6.40% 7.75%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
27
<PAGE> 28
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
--------------------------------------
SERIES A INVESTOR CLASS
--------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 1/13/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- -------- --------
<S> <C> <C> <C>
Net asset value at beginning of period...................... $ 1.00 $ 1.00 $ 1.00
----------- -------- --------
Income from investment operations
Net investment income.................................... 0.0249 0.0308 0.0188
Net realized gain (loss) on investments.................. -- -- --
----------- -------- --------
Total from investment operations..................... 0.0249 0.0308 0.0188
----------- -------- --------
Less distributions
Distributions from net investment income................. (0.0249) (0.0308) (0.0188)
Distributions from net realized capital gains............ -- -- --
----------- -------- --------
Total distributions.................................. (0.0249) (0.0308) (0.0188)
----------- -------- --------
Net asset value at end of period............................ $ 1.00 $ 1.00 $ 1.00
=========== ======== ========
Total return................................................ 2.51% 3.12% 1.89%
Ratios/Supplemental data
Net assets at end of period (in thousands)............... $ 7,302 $ 4,342 $ 49
Ratios of expenses to average net assets
After advisory/administration fee waivers.............. 0.75%(2) 0.75% 0.67%(2)
Before advisory/administration fee waivers............. 1.12%(2) 1.16% 0.78%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.............. 5.04%(2) 3.39% 2.62%(2)
Before advisory/administration fee waivers............. 4.67%(2) 2.98% 2.51%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
28
<PAGE> 29
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
--------------------------------- ---------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR 8/2/93(1) ENDED YEAR YEAR
3/31/95 ENDED THROUGH 3/31/95 ENDED ENDED
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED) 9/30/94 9/30/93
----------- -------- -------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- -------- -------- ----------- --------- --------
Income from investment operations
Net investment income........................... 0.0176 0.0246 0.0040 0.0161 0.0219 0.0205
Net realized gain (loss)........................ -- -- -- -- -- --
----------- -------- -------- ----------- --------- --------
Total from investment operations............ 0.0176 0.0246 0.0040 0.0161 0.0219 0.0205
----------- -------- -------- ----------- --------- --------
Less distributions
Distributions from net investment income.......... (0.0176) (0.0246) (0.0040) (0.0161) (0.0219) (0.0205)
Distributions from net realized capital gains... -- -- -- -- -- --
----------- -------- -------- ----------- --------- --------
Total distributions......................... (0.0176) (0.0246) (0.0040) (0.0161) (0.0219) (0.0205)
----------- -------- -------- ----------- --------- --------
Net asset value at end of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ======== ======== =========== ========= ========
Total return....................................... 1.78% 2.48% 0.40% 1.62% 2.20% 2.10%
Ratios/Supplemental data
Net assets at end of period (in thousands)...... $ 34,747 $30,608 $39,148 $ 190,789 $133,358 $93,937
Ratios of expenses to average net assets
After advisory/administration fee waivers..... 0.25%(2) 0.25% 0.25%(2) 0.55%(2) 0.51% 0.61%
Before advisory/administration fee waivers.... 0.69%(2) 0.73% 0.36%(2) 0.99%(2) 0.99% 0.72%
Ratios of net investment income to average
net assets
After advisory/administration fee waivers..... 3.51%(2) 2.48% 2.45%(2) 3.25%(2) 2.18% 2.02%
Before advisory/administration fee waivers.... 3.07%(2) 2.01% 2.34%(2) 2.81%(2) 1.71% 1.91%
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
---------------------------------
SERVICE CLASS
---------------------------------
FOR THE
PERIOD
YEAR YEAR 11/1/89(1)
ENDED ENDED THROUGH
9/30/92 9/30/91 9/30/90
-------- -------- ---------
<S> <C> <C> <C>
Net asset value at beginning of period............. $ 1.00 $ 1.00 $ 1.00
--------- -------- ---------
Income from investment operations
Net investment income........................... 0.0281 0.0438 0.0486
Net realized gain (loss)........................ -- -- --
--------- -------- ---------
Total from investment operations............ 0.0281 0.0438 0.0486
--------- -------- ---------
Less distributions
Distributions from net investment income.......... (0.0281) (0.0438) (0.0486)
Distributions from net realized capital gains... -- -- --
--------- -------- ---------
Total distributions......................... (0.0281) (0.0438) (0.0486)
--------- -------- ---------
Net asset value at end of period................... $ 1.00 $ 1.00 $ 1.00
========= ======== =========
Total return....................................... 2.85% 4.47% 4.97%
Ratios/Supplemental data
Net assets at end of period (in thousands)...... $125,152 $89,312 $112,108
Ratios of expenses to average net assets
After advisory/administration fee waivers..... 0.63% 0.65% 0.65%(2)
Before advisory/administration fee waivers.... 0.68% 0.70% 0.70%(2)
Ratios of net investment income to average
net assets
After advisory/administration fee waivers..... 2.78% 4.40% 5.31%(2)
Before advisory/administration fee waivers.... 2.73% 4.35% 5.26%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
29
<PAGE> 30
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET
PORTFOLIO
--------------------------------------
SERIES A INVESTOR CLASS
--------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 11/02/92(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- -------- ---------
<S> <C> <C> <C>
Net asset value at beginning of period...................... $ 1.00 $ 1.00 $ 1.00
----------- -------- ---------
Income from investment operations
Net investment income.................................... 0.0151 0.0193 0.0181
Net realized gain (loss) on investments.................. -- -- --
----------- -------- ---------
Total from investment operations..................... 0.0151 0.0193 0.0181
----------- -------- ---------
Less distributions
Distributions from net investment income................. (0.0151) (0.0193) (0.0181)
Distributions from net realized capital gains............ -- -- --
----------- -------- ---------
Total distributions.................................. (0.0151) (0.0193) (0.0181)
----------- -------- ---------
Net asset value at end of period............................ $ 1.00 $ 1.00 $ 1.00
=========== ======== =========
Total return................................................ 1.52% 1.95% 1.83%
Ratios/Supplemental data
Net assets at end of period (in thousands)............... $ 29 $ 41 $ 15
Ratios of expenses to average net assets
After advisory/administration fee waivers.............. 0.75%(2) 0.75% 0.72%(2)
Before advisory/administration fee waivers............. 1.19%(2) 1.23% 0.83%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.............. 3.00%(2) 2.05% 2.23%(2)
Before advisory/administration fee waivers............. 2.56%(2) 1.58% 2.12%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
30
<PAGE> 31
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET PORTFOLIO
---------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
--------------------------------- -----------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR 8/2/93(1) ENDED YEAR YEAR
3/31/95 ENDED THROUGH 3/31/95 ENDED ENDED
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED) 9/30/94 9/30/93
----------- -------- -------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- -------- -------- ----------- --------- ---------
Income from investment operations
Net investment income............................ 0.0269 0.0357 0.0049 0.0254 0.0331 0.0269
Net realized gain (loss)......................... -- -- -- -- -- --
----------- -------- -------- ----------- --------- ---------
Total from investment operations............. 0.0269 0.0357 0.0049 0.0254 0.0331 0.0269
----------- -------- -------- ----------- --------- ---------
Less distributions
Distributions from net investment income......... (0.0269) (0.0357) (0.0049) (0.0254) (0.0331) (0.0269)
Distributions from net realized capital gains.... -- -- -- -- -- --
----------- -------- -------- ----------- --------- ---------
Total distributions.......................... (0.0269) (0.0357) (0.0049) (0.0254) (0.0331) (0.0269)
----------- -------- -------- ----------- --------- ---------
Net asset value at end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ======== ======== =========== ========= =========
Total return........................................ 2.72% 3.63% 0.49% 2.57% 3.36% 2.72%
Ratios/Supplemental data
Net assets at end of period (in thousands)....... $ 113,707 $37,519 $13,513 $ 505,356 $372,883 $185,400
Ratios of expenses to average net assets
After advisory/administration fee waivers...... 0.25%(2) 0.25% 0.25%(2) 0.55%(2) 0.52% 0.60%
Before advisory/administration fee waivers..... 0.66%(2) 0.70% 0.38%(2) 0.96%(2) 0.97% 0.73%
Ratios of net investment income to average
net assets
After advisory/administration fee waivers...... 5.53%(2) 3.69% 3.01%(2) 5.14%(2) 3.42% 2.68%
Before advisory/administration fee waivers..... 5.12%(2) 3.24% 2.88%(2) 4.72%(2) 2.97% 2.55%
<CAPTION>
GOVERNMENT MONEY MARKET PORTFOLIO
---------------------------------
SERVICE CLASS
---------------------------------
FOR THE
PERIOD
YEAR YEAR 11/1/89(1)
ENDED ENDED THROUGH
9/30/92 9/30/91 9/30/90
--------- --------- ---------
<S> <C> <C> <C>
Net asset value at beginning of period.............. $ 1.00 $ 1.00 $ 1.00
--------- --------- ---------
Income from investment operations
Net investment income............................ 0.0394 0.0627 0.0697
Net realized gain (loss)......................... -- -- --
--------- --------- ---------
Total from investment operations............. 0.0394 0.0627 0.0697
--------- --------- ---------
Less distributions
Distributions from net investment income......... (0.0394) (0.0627) (0.0697)
Distributions from net realized capital gains.... -- -- --
--------- --------- ---------
Total distributions.......................... (0.0394) (0.0627) (0.0697)
--------- --------- ---------
Net asset value at end of period.................... $ 1.00 $ 1.00 $ 1.00
========= ========= =========
Total return........................................ 4.01% 6.46% 7.29%
Ratios/Supplemental data
Net assets at end of period (in thousands)....... $160,269 $180,776 $146,148
Ratios of expenses to average net assets
After advisory/administration fee waivers...... 0.62% 0.65% 0.65%(2)
Before advisory/administration fee waivers..... 0.67% 0.70% 0.70%(2)
Ratios of net investment income to average
net assets
After advisory/administration fee waivers...... 3.91% 6.27% 7.62%(2)
Before advisory/administration fee waivers..... 3.86% 6.22% 7.57%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
31
<PAGE> 32
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET PORTFOLIO
-------------------------------------
SERIES A INVESTOR CLASS
-------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 1/14/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- -------- --------
<S> <C> <C> <C>
Net asset value at beginning of period....................... $ 1.00 $ 1.00 $ 1.00
----------- -------- --------
Income from investment operations
Net investment income..................................... 0.0245 0.0309 0.0183
Net realized gain (loss) on investments................... -- -- --
----------- -------- --------
Total from investment operations...................... 0.0245 0.0309 0.0183
----------- -------- --------
Less distributions
Distributions from net investment income.................. (0.0245) (0.0309) (0.0183)
Distributions from net realized capital gains............. -- -- --
----------- -------- --------
Total distributions................................... (0.0245) (0.0309) (0.0183)
----------- -------- --------
Net asset value at end of period............................. $ 1.00 $ 1.00 $ 1.00
=========== ======== ========
Total return................................................. 2.47% 3.11% 1.85%
Ratios/Supplemental data
Net assets at end of period (in thousands)................ $ 2,400 $ 1,656 $ 50
Ratios of expenses to average net assets
After advisory/administration fee waivers............... 0.75%(2) 0.75% 0.65%(2)
Before advisory/administration fee waivers.............. 1.16%(2) 1.20% 0.78%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers............... 4.93%(2) 3.60% 2.57%(2)
Before advisory/administration fee waivers.............. 4.51%(2) 3.14% 2.44%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
32
<PAGE> 33
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
OHIO MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------
INSTITUTIONAL SERVICE
CLASS CLASS
--------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED YEAR 6/10/93(1) ENDED YEAR 6/1/93(1)
3/31/95 ENDED THROUGH 3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED) 9/30/94 9/30/93
----------- -------- -------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- -------- -------- ----------- -------- --------
Income from investment operations
Net investment income................................ 0.0174 0.0252 0.0073 0.0159 0.0225 0.0074
Net realized gain (loss) on investments.............. -- -- -- -- -- --
----------- -------- -------- ----------- -------- --------
Total from investment operations................. 0.0174 0.0252 0.0073 0.0159 0.0225 0.0074
----------- -------- -------- ----------- -------- --------
Less distributions
Distributions from net investment income............. (0.0174) (0.0252) (0.0073) (0.0159) (0.0225) (0.0074)
Distributions from net realized capital gains........ -- -- -- -- -- --
----------- -------- -------- ----------- -------- --------
Total distributions.............................. (0.0174) (0.0252) (0.0073) (0.0159) (0.0225) (0.0074)
----------- -------- -------- ----------- -------- --------
Net asset value at end of period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ======== ======== =========== ======== ========
Total return............................................ 1.76% 2.55% 0.73% 1.60% 2.27% 0.75%
Ratios/Supplemental data
Net assets at end of period (in thousands)........... $ 12,191 $10,521 $12,026 $ 47,993 $44,066 $15,239
Ratios of expenses to average net assets
After advisory/administration fee waivers.......... 0.25%(2) 0.13% 0.10%(2) 0.55%(2) 0.40% 0.23%(2)
Before advisory/administration fee waivers......... 0.73%(2) 0.77% 0.83%(2) 1.03%(2) 1.04% 0.96%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.......... 3.54%(2) 2.56% 2.45%(2) 3.21%(2) 2.29% 2.23%(2)
Before advisory/administration fee waivers......... 3.06%(2) 1.93% 1.72%(2) 2.74%(2) 1.65% 1.50%(2)
<CAPTION>
OHIO MUNICIPAL MONEY
MARKET PORTFOLIO
-----------------------
SERIES A
INVESTOR CLASS
----------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED 10/5/93(1)
3/31/95 THROUGH
(UNAUDITED) 9/30/94
----------- --------
<S> <C> <C>
Net asset value at beginning of period.................. $ 1.00 $ 1.00
----------- --------
Income from investment operations
Net investment income................................ 0.0150 0.0199
Net realized gain (loss) on investments.............. -- --
----------- --------
Total from investment operations................. 0.0150 0.0199
----------- --------
Less distributions
Distributions from net investment income............. (0.0150) (0.0199)
Distributions from net realized capital gains........ -- --
----------- --------
Total distributions.............................. (0.0150) (0.0199)
----------- --------
Net asset value at end of period........................ $ 1.00 $ 1.00
=========== ========
Total return............................................ 1.50% 2.01%
Ratios/Supplemental data
Net assets at end of period (in thousands)........... $ 5 $ 28
Ratios of expenses to average net assets
After advisory/administration fee waivers.......... 0.75%(2) 0.62%(2)
Before advisory/administration fee waivers......... 1.22%(2) 1.26%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.......... 2.94%(2) 1.94%(2)
Before advisory/administration fee waivers......... 2.47%(2) 1.30%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
33
<PAGE> 34
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------------------------------
SERIES A
INSTITUTIONAL SERVICE INVESTOR
CLASS CLASS CLASS
--------------------------------- --------------------------------- -----------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED YEAR 6/1/93(1) ENDED YEAR 6/11/93(1) ENDED 12/28/93(1)
3/31/95 ENDED THROUGH 3/31/95 ENDED THROUGH 3/31/95 THROUGH
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED) 9/30/94 9/30/93 (UNAUDITED) 9/30/94
----------- --------- -------- ----------- -------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- --------- -------- ----------- -------- -------- ----------- ---------
Income from investment
operations
Net investment income... 0.0170 0.0247 0.0078 0.0156 0.0221 0.0074 0.0146 0.0153
Net realized gain (loss)
on investments........ -- -- -- -- -- -- -- --
----------- --------- -------- ----------- -------- -------- ----------- ---------
Total from
investment
operations......... 0.0170 0.0247 0.0078 0.0156 0.0221 0.0074 0.0146 0.0153
----------- --------- -------- ----------- -------- -------- ----------- ---------
Less distributions
Distributions from net
investment income..... (0.0170) (0.0247) (0.0078) (0.0156) (0.0221) (0.0074) (0.0146) (0.0153)
Distributions from net
realized capital
gains................. -- -- -- -- -- -- -- --
----------- --------- -------- ----------- -------- -------- ----------- ---------
Total
distributions...... (0.0170) (0.0247) (0.0078) (0.0156) (0.0221) (0.0074) (0.0146) (0.0153)
----------- --------- -------- ----------- -------- -------- ----------- ---------
Net asset value at end of
period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========= ======== =========== ======== ======== =========== =========
Total return............... 1.72% 2.49% 0.78% 1.57% 2.24% 0.74% 1.47% 1.58%
Ratios/Supplemental data
Net assets at end of
period (in
thousands)............ $ 187,858 $158,102 $ 2,242 $ 137,297 $60,560 $ 8,919 $ 105 $ 139
Ratios of expenses to
average net assets
After
advisory/administration
fee waivers......... 0.25%(2) 0.16% 0.09%(2) 0.55%(2) 0.42% 0.32%(2) 0.75%(2) 0.65%(2)
Before
advisory/administration
fee waivers......... 0.66%(2) 0.73% 0.97%(2) 0.96%(2) 0.99% 1.20%(2) 1.16%(2) 1.22%(2)
Ratios of net investment
income to average
net assets
After
advisory/administration
fee waivers......... 3.41%(2) 2.64% 2.15%(2) 3.17%(2) 2.31% 2.42%(2) 2.91%(2) 2.11%(2)
Before
advisory/administration
fee waivers......... 3.00%(2) 2.07% 1.27%(2) 2.76%(2) 1.75% 1.54%(2) 2.50%(2) 1.54%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
34
<PAGE> 35
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL MONEY MARKET PORTFOLIO
----------------------------------------------------------------------------------
SERIES A
INSTITUTIONAL SERVICE INVESTOR
CLASS CLASS CLASS
------------------------------------- ------------------------ -----------
FOR THE FOR THE
FOR THE FOR THE PERIOD FOR THE PERIOD
SIX MONTHS PERIOD 11/01/94(4) PERIOD 2/14/95(1)
ENDED YEAR 5/4/93(1) THROUGH 4/29/94(1) THROUGH
3/31/95 ENDED THROUGH 3/31/95 THROUGH 3/31/95
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED) 9/30/94 (UNAUDITED)
----------- -------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- -------- -------- ----------- -------- -----------
Income from investment operations
Net investment income................... 0.0174 0.0249 0.0097 0.0135 0.0099 0.0041
Net realized gain (loss) on
investments........................... -- -- -- -- -- --
----------- -------- -------- ----------- -------- -----------
Total from investment operations.... 0.0174 0.0249 0.0097 0.0135 0.0099 0.0041
----------- -------- -------- ----------- -------- -----------
Less distributions
Distributions from net investment
income................................ (0.0174) (0.0249) (0.0097) (0.0135) (0.0099) (0.0041)
Distributions from net realized capital
gains................................. -- -- -- -- -- --
----------- -------- -------- ----------- -------- -----------
Total distributions................. (0.0174) (0.0249) (0.0097) (0.0135) (0.0099) (0.0041)
----------- -------- -------- ----------- -------- -----------
Net asset value at end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ======== ======== =========== ======== ===========
Total return............................... 1.75% 2.52% 0.97% 1.35% 0.99% 0.41%
Ratios/Supplemental data
Net assets at end of period (in
thousands)............................ $ 118,224 $69,673 $34,135 $ 406 $ -- (3) $ 3
Ratios of expenses to average net assets
After advisory/administration fee
waivers............................. 0.16%(2) 0.10% 0.10%(2) 0.53%(2) 0.36%(2) 0.66%(2)
Before advisory/administration fee
waivers............................. 0.71%(2) 0.76% 0.81%(2) 1.19%(2) 1.02%(2) 2.99%(2)
Ratios of net investment income to
average net assets
After advisory/administration fee
waivers............................. 3.52%(2) 2.53% 2.35%(2) 3.30%(2) 2.54%(2) 3.32%(2)
Before advisory/administration fee
waivers............................. 2.97%(2) 1.87%(2) 1.64%(2) 2.64%(2) 1.87%(2) 1.00%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) There were no Service shares outstanding as of September 30, 1994.
(4) Reissuance of shares.
See accompanying notes to financial statements.
35
<PAGE> 36
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL
MONEY MARKET PORTFOLIO
----------------------------------------
INSTITUTIONAL SERVICE
CLASS CLASS
------------------------ -----------
FOR THE
FOR THE FOR THE PERIOD
SIX MONTHS PERIOD 10/11/94(1)
ENDED 7/25/94(1) THROUGH
3/31/95 THROUGH 3/31/95
(UNAUDITED) 9/30/94 (UNAUDITED)
----------- -------- -----------
<S> <C> <C> <C>
Net asset value at beginning of period....................... $ 1.00 $ 1.00 $ 1.00
----------- -------- -----------
Income from investment operations
Net investment income..................................... 0.0171 0.0053 0.0149
Net realized gain (loss) on investments................... -- -- --
----------- -------- -----------
Total from investment operations...................... 0.0171 0.0053 0.0149
----------- -------- -----------
Less distributions
Distributions from net investment income.................. (0.0171) (0.0053) (0.0149)
Distributions from net realized capital gains............. -- -- --
----------- -------- -----------
Total distributions................................... (0.0171) (0.0053) (0.0149)
----------- -------- -----------
Net asset value at end of period............................. $ 1.00 $ 1.00 $ 1.00
=========== ======== ===========
Total return................................................. 1.72% 0.53% 1.50%
Ratios/Supplemental data
Net assets at end of period (in thousands)................ $ 18,634 $13,831 $ 400
Ratios of expenses to average net assets
After advisory/administration fee waivers............... 0.10%(2) 0.10%(2) 0.40%(2)
Before advisory/administration fee waivers.............. 0.70%(2) 1.02%(2) 1.00%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers............... 3.44%(2) 2.89%(2) 3.23%(2)
Before advisory/administration fee waivers.............. 2.84%(2) 1.97%(2) 2.63%(2)
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
36
<PAGE> 37
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
(UNAUDITED)
The PNC Fund (the "Fund") was organized on December 22, 1988 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as an open-end management investment company. The Fund
consists of twenty-five separate Portfolios: Money Market Portfolio, Municipal
Money Market Portfolio, Government Money Market Portfolio, Ohio Municipal Money
Market Portfolio, Pennsylvania Municipal Money Market Portfolio, North Carolina
Municipal Money Market Portfolio, Virginia Municipal Money Market Portfolio,
Value Equity Portfolio, Growth Equity Portfolio, Small Cap Growth Equity
Portfolio, Core Equity Portfolio, Index Equity Portfolio, Small Cap Value Equity
Portfolio, International Equity Portfolio, International Emerging Markets
Portfolio, Balanced Portfolio, Managed Income Portfolio, Tax-Free Income
Portfolio, Intermediate Government Portfolio, Ohio Tax-Free Income Portfolio,
Pennsylvania Tax-Free Income Portfolio, Short-Term Bond Portfolio,
Intermediate-Term Bond Portfolio, International Fixed Income Portfolio and
Government Income Portfolio. As of March 31, 1995, the International Fixed
Income Portfolio had not commenced operations. This report relates solely to
Money Market Portfolio, Municipal Money Market Portfolio, Government Money
Market Portfolio, Ohio Municipal Money Market Portfolio, Pennsylvania Municipal
Money Market Portfolio, North Carolina Municipal Money Market Portfolio and
Virginia Municipal Money Market Portfolio (the "Portfolios").
Each Portfolio (except Money Market Portfolio) has three classes of shares,
one class being referred to as the Service shares, one class being referred to
as the Institutional shares and one class being referred to as the Series A
Investor shares. Money Market Portfolio has a fourth class of shares being
referred to as the Series B Investor shares. No Series B Investor shares had
been issued for the Money Market Portfolio through March 31, 1995. Series A
Investor, Series B Investor, Institutional and Service shares in a Portfolio
represent equal pro rata interests in such Portfolio, except that they bear
different expenses which reflect the difference in the range of services
provided to them. Series A Investor shares bear the expense of the Series A
Distribution and Service Plan at an annual rate not to exceed .55% of the
average daily net asset value of each Portfolio's outstanding Series A Investor
shares. Series B Investor shares bear the expense of the Series B Distribution
Plan at an annual rate not to exceed .75% of the average daily net asset value
of each Portfolio's outstanding Series B Investor shares. Series B Investor
shares also bear the expense of the Series B Service Plan at an annual rate not
to exceed .25% of the average daily net asset value of each Portfolio's
outstanding Series B Investor shares. Under the Fund's Service Plan, Service
shares bear the expense of fees at an annual rate not to exceed .15% of the
average daily net asset value of each Portfolio's outstanding Service shares.
Service shares also bear the expense of a service fee at an annual rate not to
exceed .15% of the average daily net asset value of each Portfolio's outstanding
Service shares for other shareholder support activities provided by service
organizations. Institutional shares do not bear the expense of the Series A
Distribution and Service Plan, the Service Plan, the Series B Distribution Plan
or the Series B Service Plan. The Series A Investor and Service classes are
currently bearing such respective expenses at annual rates of .50% of the
average daily net asset value of Series A Investor shares and at rates
aggregating .30% of the average daily net asset value of Service shares.
37
<PAGE> 38
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Security Valuation -- Portfolio securities are valued under the amortized
cost method which approximates current market value. Under this method,
securities are valued at cost when purchased and thereafter, a constant
proportionate amortization of any discount or premium is recorded until the
maturity of the security. Regular review and monitoring of the valuation is
performed in an attempt to avoid dilution or other unfair results to
shareholders. The Fund seeks to maintain the net asset value per share of each
Portfolio at $1.00.
Dividends to Shareholders -- Dividends from net investment income are
declared daily and paid monthly. Net realized short-term capital gains, if any,
will be distributed at least annually.
Federal Taxes -- No provision is made for Federal taxes as it is the Fund's
intention to have each Portfolio continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from Federal income and excise taxes.
Security Transactions and Investment Income -- Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
Federal income tax purposes. Interest income is recorded on the accrual basis.
Certain expenses, principally fees relating to the Service Plan, the Series A
Distribution and Service Plan, the Series B Distribution Plan and the Series B
Service Plan, are class specific expenses. Expenses not directly attributable to
a specific Portfolio or class are allocated among all of the Portfolios or
classes of the Fund based on their relative net assets.
Repurchase Agreements -- Money market instruments may be purchased from
banks and non-bank dealers subject to the seller's agreement to repurchase them
at an agreed upon date and price. Collateral for repurchase agreements may have
longer maturities than the maximum permissible remaining maturity of portfolio
investments. The seller will be required on a daily basis to maintain the value
of the securities subject to the agreement at not less than the repurchase
price. The agreements are conditioned upon the collateral being deposited under
the Federal Reserve book-entry system or held in a separate account by the
Fund's custodian or an authorized securities depository.
Organization Costs -- Costs incurred by each Portfolio in connection with
its organization, registration and initial public offering have been deferred
and are being amortized using the straight-line method over a five-year period
beginning on the date on which each Portfolio commenced its investment
activities.
(B) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to an Investment Advisory Agreement, PNC Institutional Management
Corporation ("PIMC"), a wholly-owned subsidiary of PNC Asset Management Group,
Inc. ("PAMG"), which is in turn a wholly-owned subsidiary of PNC Bank, National
Association ("PNC Bank"), serves as investment adviser for each of the Fund's
Portfolios. PNC Bank serves as the sub-adviser for each of the Funds'
Portfolios. PNC Bank is an indirect wholly-owned subsidiary of PNC Bank Corp.
38
<PAGE> 39
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
For its advisory services, PIMC is entitled to receive fees, computed daily
and payable monthly based on each Portfolio's average daily net assets, at the
following annual rates: .45% of the first $1 billion, .40% of the next $1
billion, .375% of the next $1 billion, and .35% of net assets in excess of $3
billion.
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for any Portfolio. For the six months ended March 31, 1995,
advisory fees and waivers for each Portfolio were as follows:
<TABLE>
<CAPTION>
GROSS
ADVISORY NET
FEE WAIVER ADVISORY FEE
---------- ---------- ------------
<S> <C> <C> <C>
Money Market Portfolio.................................. $2,775,547 $2,210,453 $565,094
Municipal Money Market Portfolio........................ 469,233 364,959 104,274
Government Money Market Portfolio....................... 1,278,894 994,695 284,199
Ohio Municipal Money Market Portfolio................... 131,086 103,820 27,266
Pennsylvania Municipal Money Market Portfolio........... 772,434 573,971 198,463
North Carolina Municipal Money Market Portfolio......... 197,127 179,846 17,281
Virginia Municipal Money Market Portfolio............... 34,404 34,404 --
</TABLE>
PIMC pays PNC Bank for its sub-advisory services.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank Corp.,
and Provident Distributors, Inc. ("PDI") act as co-administrators for the Fund.
The combined administration fee is computed daily and payable monthly, based on
a percentage of the average daily net assets of each Portfolio, at the following
annual rates: .15% of the first $500 million, .13% of the next $500 million,
.11% of the next $1 billion and .10% of net assets in excess of $2 billion.
PFPC and PDI may, at their discretion, voluntarily waive all or any portion
of their administration fees for any Portfolio. For the six months ended March
31, 1995, administration fees and waivers for each Portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION FEE WAIVER ADMINISTRATION FEE
------------------- -------- -------------------
<S> <C> <C> <C>
Money Market Portfolio.......................... $ 844,302 $150,629 $ 693,673
Municipal Money Market Portfolio................ 156,411 92,865 63,546
Government Money Market Portfolio............... 417,822 178,110 239,712
Ohio Municipal Money Market Portfolio........... 43,695 34,606 9,089
Pennsylvania Municipal Money Market Portfolio... 257,478 126,528 130,950
North Carolina Municipal Money Market
Portfolio..................................... 65,709 59,949 5,760
Virginia Municipal Money Market Portfolio....... 11,468 11,468 --
</TABLE>
In addition, PNC Bank serves as custodian for each of the Fund's
Portfolios. PFPC serves as transfer and dividend disbursing agent.
PIMC, PFPC and PDI have also voluntarily agreed to reimburse expenses in
the amount of $2,665 with respect to the North Carolina Municipal Money Market
Portfolio and $14,525 with respect to the Virginia Municipal Money Market
Portfolio for the six months ended March 31, 1995.
39
<PAGE> 40
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
PIMC, PFPC and PDI have also agreed to reimburse each Portfolio for the
amount, if any, by which the total operating and management expenses of such
Portfolio for any fiscal year exceed the most restrictive state blue sky expense
limitation in effect from time to time, to the extent required by such
limitation. No such reimbursements were necessary for the six months ended March
31, 1995.
(C) CAPITAL SHARES
The Portfolios have each sold and redeemed shares only at a constant net
asset value of $1.00 per share, the number of shares represented by such sales,
acquisitions, reinvestments, and redemptions is the same as the dollar amounts
shown below for such transactions.
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
MUNICIPAL
MONEY MARKET PORTFOLIO
MONEY MARKET PORTFOLIO ------------------------------
---------------------------------- FOR THE
FOR THE SIX MONTHS
SIX MONTHS FOR THE YEAR ENDED FOR THE YEAR
ENDED ENDED MARCH 31, ENDED
MARCH 31, 1995 SEPTEMBER 30, 1995 SEPTEMBER 30,
(UNAUDITED) 1994 (UNAUDITED) 1994
--------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class......... $ 547,501,995 $ 1,541,859,975 $ 73,868,151 $ 112,801,931
Service Class............... 2,076,774,716 3,340,513,140 482,372,726 626,534,455
Series A Investor Class..... 12,592,799 10,165,172 2,151 57,540
Shares issued in acquisition:
Institutional Class......... -- -- -- --
Service Class............... -- 3,334,564 -- --
Series A Investor Class..... -- -- -- --
Shares issued in reinvestment
of dividends:
Institutional Class......... 2,758 1,406 -- --
Service Class............... 2,462,395 2,125,570 273,748 305,101
Series A Investor Class..... 105,983 54,629 507 619
Shares redeemed:
Institutional Class......... (456,540,033) (1,474,467,520) (69,728,311) (121,338,119)
Service Class............... (2,049,972,828) (3,185,344,683) (425,203,730) (587,403,447)
Series A Investor Class..... (9,739,012) (5,926,562) (15,043) (32,023)
--------------- --------------- ------------- -------------
Net increase.................. $ 123,188,773 $ 232,315,691 $ 61,570,199 $ 30,926,057
=============== =============== ============= =============
</TABLE>
40
<PAGE> 41
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
OHIO MUNICIPAL
GOVERNMENT MONEY MARKET PORTFOLIO
MONEY MARKET PORTFOLIO ------------------------------
---------------------------------- FOR THE
FOR THE SIX MONTHS
SIX MONTHS FOR THE YEAR ENDED FOR THE YEAR
ENDED ENDED MARCH 31, ENDED
MARCH 31, 1995 SEPTEMBER 30, 1995 SEPTEMBER 30,
(UNAUDITED) 1994 (UNAUDITED) 1994
--------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class......... $ 389,009,440 $ 228,682,656 $ 70,320,128 $ 125,595,359
Service Class............... 1,418,765,208 1,915,338,460 49,146,606 158,217,405
Series A Investor Class..... 3,964,892 1,753,740 30,000 115,346
Shares issued in reinvestment
of dividends:
Institutional Class......... -- -- 3,177 15,291
Service Class............... 1,969,671 1,768,196 168,283 194,375
Series A Investor Class..... 36,900 1,952 391 909
Shares redeemed:
Institutional Class......... (312,822,300) (204,678,202) (68,652,896) (127,116,173)
Service Class............... (1,288,216,761) (1,729,686,389) (45,388,076) (129,582,395)
Series A Investor Class..... (3,257,741) (149,412) (53,340) (88,672)
--------------- --------------- ------------- -------------
Net increase.................. $ 209,449,309 $ 213,031,001 $ 5,574,273 $ 27,351,445
=============== =============== ============= =============
</TABLE>
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPAL
PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
MONEY MARKET PORTFOLIO ------------------------------
---------------------------------- FOR THE
FOR THE SIX MONTHS
SIX MONTHS FOR THE YEAR ENDED FOR THE YEAR
ENDED ENDED MARCH 31, ENDED
MARCH 31, 1995 SEPTEMBER 30, 1995 SEPTEMBER 30,
(UNAUDITED) 1994 (UNAUDITED) 1994
--------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class......... $ 296,066,267 $ 376,513,609 $ 223,865,692 $ 323,582,453
Service Class............... 179,596,703 130,876,896 1,578,675 648,753
Series A Investor Class..... 57,551 161,583 2,600 --
Shares issued in reinvestment
of dividends:
Institutional Class......... 14,962 4,063 11,094 20,890
Service Class............... 253,373 271,409 370 806
Series A Investor Class..... 1,738 595 3 --
Shares redeemed:
Institutional Class......... (266,325,553) (220,657,499) (175,325,454) (288,065,877)
Service Class............... (103,113,017) (79,507,178) (1,172,420) (649,559)
Series A Investor Class..... (92,949) (23,169) -- --
--------------- --------------- ------------- -------------
Net increase.................. $ 106,459,075 $ 207,640,309 $ 48,960,560 $ 35,537,466
=============== =============== ============= =============
</TABLE>
41
<PAGE> 42
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
VIRGINIA MUNICIPAL
MONEY MARKET PORTFOLIO
---------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS JULY 25,
ENDED 1994(1)
MARCH 31, THROUGH
1995 SEPTEMBER
(UNAUDITED) 30, 1994
------------ -----------
<S> <C> <C>
Shares sold:
Institutional Class.................................................. $ 19,128,990 $15,828,907
Service Class........................................................ 634,255 --
Series A Investor Class.............................................. -- --
Shares issued in reinvestment of dividends:
Institutional Class.................................................. -- --
Service Class........................................................ -- --
Series A Investor Class.............................................. -- --
Shares redeemed:
Institutional Class.................................................. (14,325,898) (1,997,809)
Service Class........................................................ (234,150) --
Series A Investor Class.............................................. -- --
------------ -----------
Net increase........................................................... $ 5,203,197 $13,831,098
============ ===========
</TABLE>
- -------------
(1) Commencement of operations.
(D) AT MARCH 31, 1995, NET ASSETS CONSISTED OF:
<TABLE>
<CAPTION>
OHIO
MUNICIPAL GOVERNMENT MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Capital paid in....................... $1,206,451,057 $225,599,914 $621,451,943 $ 60,191,084
Accumulated net realized gain (loss)
on investment transactions............ 18,746 (35,316) 11,145 (2,285)
-------------- ------------ ------------ ------------
$1,206,469,803 $225,564,598 $621,463,088 $ 60,188,799
============== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NORTH
PENNSYLVANIA CAROLINA VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C>
Capital paid in........................................ $325,260,025 $118,633,569 $ 19,034,295
Accumulated net realized gain (loss)
on investment transactions............................. 130 (112) 20
------------ ------------ ------------
$325,260,155 $118,633,457 $ 19,034,315
============ ============ ============
</TABLE>
42
<PAGE> 43
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
(E) CAPITAL LOSS CARRYOVER
At September 30, 1994, capital loss carryovers were available to offset
possible future realized capital gains as follows: $637 in the Money Market
Portfolio which expire in 2002, $22,960 in the Municipal Money Market Portfolio
which expire in 2002, $2,285 in the Ohio Municipal Money Market Portfolio which
expire in 2002, and $112 in the North Carolina Municipal Money Market Portfolio
which expire in 2001.
(F) ACQUISITION OF THE MONEY MARKET PORTFOLIO OF THE PNC FINANCIAL COMMON TRUST
FOR RETIREMENT ASSETS
On December 27, 1993, The PNC Fund acquired all the assets of the Money
Market Portfolio of the PNC Financial Common Trust for Retirement Assets from
the participants of these accounts. The acquisition was accomplished by a
tax-free exchange of assets with a value of $3,334,564 for 3,334,564 shares of
the Service class of the Money Market Portfolio at $1.00 per share.
43
<PAGE> 44
====================================================
Investment Adviser
PNC Institutional Management
Corporation
Wilmington, Delaware 19809
Sub-Adviser and Custodian
PNC Bank, National Association
Philadelphia, Pennsylvania 19101
Co-Administrator and Transfer Agent
PFPC Inc.
Wilmington, Delaware 19809
Co-Administrator and Distributor
Provident Distributors, Inc.
Radnor, Pennsylvania 19087
Counsel
Drinker Biddle & Reath
Philadelphia, Pennsylvania 19107
Independent Accountants
Coopers & Lybrand L.L.P.
Philadelphia, Pennsylvania 19103
PNCI-T-01M
====================================================
====================================================
[PNC FUNDS LOGO]
THE PNC(R) FUND
MONEY MARKET PORTFOLIO
MUNICIPAL MONEY MARKET PORTFOLIO
GOVERNMENT MONEY MARKET PORTFOLIO
OHIO MUNICIPAL MONEY
MARKET PORTFOLIO
PENNSYLVANIA MUNICIPAL MONEY
MARKET PORTFOLIO
NORTH CAROLINA MUNICIPAL MONEY
MARKET PORTFOLIO
VIRGINIA MUNICIPAL MONEY
MARKET PORTFOLIO
Semi-Annual Report to Shareholders
March 31, 1995
====================================================
<PAGE> 45
THE PNC(R) FUND
BELLEVUE PARK CORPORATE CENTER
400 BELLEVUE PARKWAY
WILMINGTON, DE 19809
April 27, 1995
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of The PNC
Fund covering the six months ended March 31, 1995. This report includes security
listings and performance results for the fixed income portfolios of The PNC
Fund.
The fixed income portfolios focus on a specific client need -- income. The
range of portfolios allows shareholders to pick investments best suited to
meeting their financial and tax objectives. These portfolios are managed with a
sophisticated blend of discipline, experience and expertise. The goal of the PNC
fixed income portfolios is to provide you with consistent returns and
above-average results.
If you have any questions regarding The PNC Fund or the enclosed
information, please contact the Fund at 1-800-422-6538.
We appreciate your participation in The PNC Fund and we welcome
opportunities to better service your needs.
Sincerely,
/s/ G. WILLING PEPPER
---------------------------
G. Willing Pepper
Chairman and President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, PNC BANK, NATIONAL ASSOCIATION OR ANY OTHER BANK AND SHARES ARE NOT
FEDERALLY INSURED BY, GUARANTEED BY, OBLIGATIONS OF OR OTHERWISE SUPPORTED BY
THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER GOVERNMENTAL AGENCY. INVESTMENTS IN SHARES OF THE
FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
<PAGE> 46
THE PNC FUND
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
Last year, the fixed income markets were hard hit by rising interest rates
and derivative-related losses. The first quarter of 1995 got off to an
inauspicious start with another increase in short-term interest rates, the
financial crisis in Mexico, and the decline in the dollar. One area that does
appear to be experiencing a trend change is the pace of business activity. In
the fourth quarter of last year, the economy grew by a revised 4.6%, pushing the
annual rate of growth to 4.0%, the strongest showing in ten years. Estimates for
the first quarter average around 3%, based on signs of lower consumer spending,
declining auto sales and a softer housing market. In recent congressional
testimony, Fed Chairman Greenspan indicated that the FOMC expects the economy to
expand at a 2-3% rate in 1995. Greenspan even used the word "ease" in his
February 1995 testimony, causing the markets to rally strongly, but temporarily,
on the belief that the year long rise in interest rates was about over.
The Fed also has reason to be pleased with the inflation numbers. The
fourth quarter GOP report revealed that prices advanced only 1.3%, versus 1.9%
in the previous quarter. For 1994, consumer prices were up 2.7%, exactly the
same as in 1993. The FOMC is estimating that consumer prices will average
3.0-3.5% in 1995.
Short-term interest rates continued their upward climb during the last two
quarters. The Federal Reserve tightened policy twice, in November 1994 and
February 1995, for a total of 125 basis points, bringing the federal funds rate
to 6.00%. Fourth quarter economic reports continued to suggest that business was
expanding, and that further Fed action was likely in the new year. On February
1, 1995 the FOMC voted to increase the federal funds target and discount rates
by 50 basis points to 6.00% and 5.25%, respectively. Although this was the first
interest rate hike of 1995, market expectations that it would also be the last
ignited a strong rally that flattened the yield curve. Three-month and six-month
Treasury bill yields fell to 5.83% and 6.11%, respectively, while the
three-month and six-month LIBOR decreased to 6.19% and 6.38%, respectively.
The last few months also saw a decrease in long-term yields as economic
activity started to show signs of slowing. The 2-year Treasury bond began the
period at 7.69% and steadily declined to 6.78% by March 31, 1995. The
intermediate sector experienced a similar decline in rates with the 5-year
Treasury bond decreasing from 7.83% at the end of December 1994 to 7.07% by
March 31, 1995. Longer yields followed a similar pattern as the 30-year Treasury
bond, which began the period at 7.88%, ended March 1995, at 7.43%.
In the corporate bond market, the spread widening which occurred during the
fourth quarter reversed itself during the first few months of 1995. Bank bonds,
which suffered the most spread widening late last year, tightened early in 1995
as rates stabilized and then declined. Yankee corporate spreads experienced some
volatility during the period as Canadian budget concerns initially pushed the
entire sector wider. As the details of some provincial budgets became public,
spreads in the corporate sector narrowed.
On February 28, 1995, PNC Bank N.A. completed the acquisition of BlackRock
Financial Management. BlackRock joins PNC as a subsidiary of PNC Asset
Management Group and will assume management of the PNC fixed income mutual funds
and common trusts.
BlackRock is a registered investment adviser which specializes in managing
high quality fixed income securities, both taxable and tax-exempt. BlackRock
currently manages over $27 billion of net assets in more than 75 portfolios of
government, mortgage, corporate and municipal securities. These assets are
managed on behalf of many individual investors in twenty-one closed-end funds
and several
2
<PAGE> 47
open-end funds and on behalf of more than 80 institutional clients in the United
States and overseas. BlackRock's institutional investor base includes Chrysler
Corporation Master Retirement Trust, Ford Motor Company Pension Plan, State
Treasurer of Florida, General Electric Pension Trust and Unisys Corporation
Master Trust.
BlackRock was formed in April 1988 by fixed income professionals who sought
to create an asset management firm specializing in managing fixed income
securities for individual and institutional investors. The professionals at
BlackRock have extensive experience creating, analyzing and trading a variety of
fixed income instruments, including the most complex structured securities.
BlackRock retains its name and continues to operate out of its New York
office. All members of BlackRock's management team have signed long-term
employment contracts and will continue to be responsible for managing
BlackRock's business.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
April 27, 1995
3
<PAGE> 48
THE PNC(R) FUND
MANAGED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
AGENCY OBLIGATIONS -- 35.0%
FEDERAL HOME LOAN
BANK BONDS -- 4.2%
5.82% 05/17/95 $ 5,000 $ 4,987,300
6.50% 08/19/95 5,245 5,258,113
6.109% 07/07/97 5,000 5,003,125
7.46% 09/09/04 6,000 5,983,499
------------
21,232,037
------------
FEDERAL HOME LOAN BANK
DISCOUNT NOTES -- 8.2%
6.25% 04/03/95 40,635 40,620,891
------------
FEDERAL HOME LOAN MORTGAGE
CORPORATION -- 2.7%
7.50% 10/01/98 4,684 4,637,486
6.50% 10/15/20 10,000 9,101,655
------------
13,739,141
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 11.8%
8.50% 08/25/95 6,101 6,162,373
7.50% 06/25/97 10,000 9,974,532
6.95% 11/01/98 4,200 4,086,197
7.50% 03/25/00 10,000 9,748,878
8.25% 12/18/00 12,000 12,562,079
7.30% 07/10/02 5,000 4,835,550
6.50% 09/25/02 5,100 4,608,369
6.40% 03/25/03 3,000 2,773,980
7.65% 04/29/04 5,000 4,913,300
------------
59,665,258
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 7.1%
9.00% 01/15/96 4,029 4,162,927
10.00% 11/15/98 154 161,873
9.00% 03/15/00 1,149 1,187,408
9.00% 06/15/00 34 35,258
9.50% 06/15/00 192 201,318
9.00% 08/15/00 3,738 3,861,998
9.00% 04/15/01 324 335,135
8.50% 07/05/01 351 356,474
8.50% 08/15/01 600 608,305
8.50% 09/15/01 214 217,629
9.50% 12/15/01 4,771 4,957,872
9.50% 12/15/02 1,001 1,040,019
8.00% 02/15/03 6,048 5,994,786
8.00% 03/15/03 2,447 2,425,536
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(CONTINUED)
8.00% 05/15/03 $ 5,978 $ 5,925,394
7.00% 02/15/05 1,378 1,290,636
6.50% 06/15/05 3,448 3,118,635
------------
35,881,203
------------
TENNESSEE VALLEY AUTHORITY -- 1.0%
7.318% 05/31/99 5,000 5,018,750
------------
TOTAL AGENCY OBLIGATIONS
(Cost $178,379,926) 176,157,280
------------
ASSET BACKED SECURITIES -- 4.3%
AUTOMOTIVE -- 2.0%
Premier Auto Trust
6.35% 04/02/97 5,000 4,925,000
6.85% 03/02/99 5,000 4,972,000
------------
9,897,000
------------
BROKERAGE -- 0.3%
Merrill Lynch Asset Backed Corp.
5.50% 07/15/95 1,724 1,705,927
------------
CREDIT INSTITUTIONS -- 1.0%
Discover Card Master Trust
6.315% 04/15/95 5,000 5,000,000
------------
FINANCE -- 1.0%
United Companies Financial Corp.
6.575% 04/10/96 5,240 5,192,166
------------
TOTAL ASSET BACKED SECURITIES
(Cost $21,946,301) 21,795,093
------------
CORPORATE BONDS -- 19.1%
AUTOMOTIVE -- 2.0%
Ford Motor Co.
8.00% 10/01/96 7,000 7,096,250
9.00% 09/15/01 3,000 3,202,500
------------
10,298,750
------------
BANKS -- 3.2%
Comerica Bank
7.25% 10/15/02 6,000 5,820,000
National Bank of Canada
8.125% 08/15/04 5,000 5,031,250
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 49
MANAGED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
BANKS (CONTINUED)
NationsBank
7.50% 02/15/97 $ 5,000 $ 5,025,000
------------
15,876,250
------------
BROKERAGE -- 1.9%
Morgan Stanley Group
7.50% 09/01/99 5,000 4,950,000
PaineWebber Group
6.25% 06/15/98 5,000 4,743,750
------------
9,693,750
------------
DRUGS & HEALTHCARE -- 1.0%
American Home Products
7.90% 02/15/05 5,000 5,062,500
------------
ENERGY & UTILITIES -- 1.9%
Idaho Power Co.
8.75% 03/15/27 4,000 4,141,250
Texas Utilities Electric Co.
9.75% 05/01/21 5,000 5,450,000
------------
9,591,250
------------
FINANCE -- 1.0%
Household International Corp.
6.00% 03/15/99 5,000 4,756,250
------------
MISCELLANEOUS -- 0.0%
Larwin Group -- Participation in
Asset Exchange
8.00% 12/01/99 3 2,596
------------
PAPER & FOREST PRODUCTS -- 1.0%
Georgia Pacific
8.25% 03/01/23 5,000 4,762,500
------------
TELECOMMUNICATIONS -- 2.9%
AT&T Corp.
6.40% 06/02/99 10,000 10,012,500
Illinois Bell Telephone
7.25% 03/15/24 5,000 4,500,000
------------
14,512,500
------------
YANKEE -- 4.2%
Bell Telephone, Canada
7.75% 04/01/06 5,000 5,006,250
Noranda, Inc.
8.00% 06/01/03 6,500 6,508,125
8.125% 06/15/04 4,500 4,533,750
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
YANKEE (CONTINUED)
Westpac Banking Corp.
9.125% 08/15/01 $ 5,000 $ 5,300,000
------------
21,348,125
------------
TOTAL CORPORATE BONDS
(Cost $97,224,090) 95,904,471
------------
MEDIUM TERM NOTES -- 1.8%
AUTOMOTIVE -- 1.0%
General Motors Acceptance Corp.
6.30% 03/31/97 5,000 4,906,250
------------
BROKERAGE -- 0.8%
Salomon Brothers, Inc.
5.26% 02/10/99 4,000 3,805,000
------------
TOTAL MEDIUM TERM NOTES
(Cost $8,962,960) 8,711,250
------------
U.S. TREASURY OBLIGATIONS -- 35.5%
U.S. TREASURY BONDS -- 12.7%
8.125% 08/15/19 24,000 25,440,238
7.875% 02/15/21 6,000 6,198,538
8.00% 11/15/21 20,000 20,999,798
7.125% 02/15/23 12,000 11,448,600
------------
64,087,174
------------
U.S. TREASURY NOTES -- 22.8%
7.875% 07/31/96 19,000 19,305,138
7.125% 10/15/98 5,000 5,039,200
7.50% 10/31/99 10,000 10,164,799
8.75% 08/15/00 7,000 7,510,229
8.00% 05/15/01 18,000 18,763,198
7.875% 08/15/01 15,800 16,391,866
6.375% 08/15/02 6,750 6,438,825
7.25% 05/15/04 21,000 21,025,200
7.875% 11/15/04 9,500 9,918,189
------------
114,556,644
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $178,015,037) 178,643,818
------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 50
MANAGED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
VARIABLE RATE OBLIGATIONS -- 3.0%
AUTOMOBILES -- 1.0%
Ford Motor Credit Corp.
6.53%** 06/23/95 $ 5,000 $ 4,987,500
------------
BROKERAGE -- 2.0%
Morgan Stanley Group
6.68%** 06/09/95 10,000 9,900,000
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $15,000,000) 14,887,500
------------
NUMBER
OF
SHARES
-------
TEMPORARY INVESTMENTS -- 0.0%
Smith Barney Money Market Fund
(Cost $36,604) 36,604 36,604
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $499,564,918*) 98.7% 496,136,016
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.3% 6,648,749
------
NET ASSETS (Applicable to
40,994,210 Institutional shares,
8,393,997 Service shares and
1,081,161 Series A Investor
shares outstanding) 100.0% $502,784,765
======
<CAPTION>
VALUE
------------
<S> <C>
NET ASSET VALUE AND REDEMPTION
PRICE PER INSTITUTIONAL, SERVICE
AND SERIES A INVESTOR SHARE
($502,784,765 / 50,469,368) $9.96
=====
OFFERING PRICE PER INSTITUTIONAL AND
SERVICE SHARE $9.96
=====
MAXIMUM OFFERING PRICE PER SERIES
A INVESTOR SHARE
($9.96 / .955) $10.43
======
</TABLE>
- -------------
* Cost for Federal income tax purposes at March 31, 1995 was $501,229,217. The
gross unrealized appreciation (depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 5,953,615
Gross unrealized depreciation (11,046,816)
------------
$ (5,093,201)
=============
</TABLE>
** Rates shown are rates as of March 31, 1995, and the maturities shown are the
longer of the next interest readjustment date or the date the principal
amount can be recovered through demand.
See accompanying notes to financial statements.
6
<PAGE> 51
THE PNC(R) FUND
TAX-FREE INCOME PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ----------
<S> <C> <C> <C>
ARIZONA -- 2.1%
Phoenix General Obligation Bonds
Series 1992
6.375% 07/01/13 $ 200 $ 206,250
----------
COLORADO -- 3.0%
Jefferson County School District
General Obligation Bonds Series
1992
6.00% 12/15/12 300 302,250
----------
DELAWARE -- 2.4%
University of Delaware Housing
and Dining Revenue Bonds Series
1993
5.50% 11/01/15 250 241,875
----------
FLORIDA -- 4.2%
Florida Department of
Transportation General Obligation
Bonds Series 1991
6.25% 07/01/07 400 417,500
----------
GEORGIA -- 11.4%
Georgia General Obligation Bonds
Series 1992B
6.30% 03/01/10 310 334,025
Georgia Municipal Electric
Authority Revenue Bonds Series
1992B
6.125% 01/01/14 400 402,000
Gwinnett County General Obligation
Bonds Series 1992
6.00% 01/01/10 400 406,000
----------
1,142,025
----------
KANSAS -- 13.4%
Johnson County General Obligation
Bonds Series 1992A (Internal
Inspection)
6.00% 09/01/07 400 410,000
Kansas Department of
Transportation Revenue Bonds
Series 1992A
6.125% 09/01/10 500 523,125
Kansas Department of
Transportation Revenue Bonds
Series 1994
6.00% 09/01/12 400 403,500
----------
1,336,625
----------
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ----------
<S> <C> <C> <C>
KENTUCKY -- 4.0%
Louisville Kentucky Water Supply
Revenue Bonds Series 1992
(Louisville Water Company)
6.00% 11/15/14 $ 400 $ 402,500
----------
LOUISIANA -- 0.2%
Louisiana Housing Finance
Authority Revenue Bonds Series
1985A (Single Family Mortgage)
9.375% 02/01/15 15 15,525
----------
MARYLAND -- 4.0%
Baltimore Port Facility Industrial
Development Revenue Bonds Series
1984A (E.I. Dupont Company)
6.50% 10/01/11 100 104,375
Maryland Health and Higher
Education Authority Revenue Bonds
Series 1993 (Johns Hopkins
Hospital)
5.60% 07/01/09 300 295,125
----------
399,500
----------
NEBRASKA -- 2.9%
Omaha Public Power District
Revenue Bonds Series 1993A
5.50% 02/01/07 300 294,375
----------
NEW JERSEY -- 1.1%
New Jersey Turnpike Authority
Revenue Bonds Series 1991C
6.50% 01/01/16 100 107,250
----------
NEW MEXICO -- 5.0%
New Mexico State University
Revenue Bonds Series 1994
5.70% 04/01/09 500 498,750
----------
NEW YORK -- 5.0%
New York City General
Obligation Bonds
4.30% 10/01/22 500 500,000
----------
NORTH CAROLINA -- 3.1%
North Carolina Municipal Power
Agency Revenue Bonds Series 1992A
(Catawba Electric)
6.00% 01/01/10 300 306,000
----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 52
TAX-FREE INCOME PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ----------
<S> <C> <C> <C>
OHIO -- 8.0%
Ohio State University Revenue
Bonds Series 1992A
5.75% 12/01/09 $ 500 $ 490,625
Ohio Water Development Authority
Revenue Bonds Series 1992 (Clean
Water Series)
5.65% 12/01/05 300 305,250
----------
795,875
----------
OREGON -- 3.1%
Portland Sewer System Revenue
Bonds Series 1992A
6.00% 10/01/12 300 308,625
----------
SOUTH CAROLINA -- 4.2%
South Carolina Public Service
Authority Revenue Bonds Series
1991D (Santee Cooper Project)
6.50% 07/01/14 100 103,500
Spartanburg Water Works
Improvement Revenue Bonds Series
1992
6.20% 06/01/09 300 307,500
----------
411,000
----------
TEXAS -- 5.4%
Sabine River Authority Pollution
Control Revenue Bonds Series 1986
(Southwestern Electric Power
Project)
8.20% 07/01/14 85 89,993
San Antonio General Obligation
Bonds Series 1992
5.75% 08/01/13 450 444,938
----------
534,931
----------
UTAH -- 1.1%
Salt Lake City Hospital Revenue
Bonds Series 1988A
8.125% 05/15/15 100 110,750
----------
VIRGINIA -- 11.7%
Hampton General Obligation Bonds
Series 1995
6.00% 01/15/08 400 414,500
Richmond General Obligation Bonds
Series 1993A
5.50% 01/15/13 400 375,500
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------- ----------
<S> <C> <C> <C>
VIRGINIA (CONTINUED)
Virginia Transportation Board
Revenue Bonds Series 1993A
5.25% 05/15/12 $ 400 $ 374,000
----------
1,164,000
----------
TOTAL MUNICIPAL BONDS
(Cost $9,437,982) 9,495,606
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES
---------
<S> <C> <C> <C>
TEMPORARY INVESTMENTS -- 3.5%
Smith Barney Tax-Free Money
Market Fund
(Cost $351,968) 351,968 351,968
----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $9,789,950*) 98.8% 9,847,574
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.2% 134,418
--------- ----------
NET ASSETS (Applicable to 1,133
Institutional shares, 297,405
Service shares and 662,291 Series
A Investor shares outstanding) 100.0% $9,981,992
======== ==========
NET ASSET VALUE AND REDEMPTION
PRICE PER INSTITUTIONAL, SERVICE
AND SERIES A INVESTOR SHARE
($9,981,992 / 960,829) $10.39
======
OFFERING PRICE PER INSTITUTIONAL AND SERVICE
SHARE $10.39
======
MAXIMUM OFFERING PRICE PER SERIES A INVESTOR
SHARE ($10.39 / .955) $10.88
======
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross
unrealized appreciation (depreciation) on a tax basis is
as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 172,112
Gross unrealized depreciation (114,488)
----------
$ 57,624
==========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 53
THE PNC(R) FUND
INTERMEDIATE GOVERNMENT PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C> <C>
AGENCY OBLIGATIONS -- 56.1%
FEDERAL HOME LOAN BANK BONDS -- 8.1%
6.109% 07/07/97 $ 5,000 $ 5,003,124
6.44% 07/25/97 5,000 4,937,400
7.00% 03/09/98 5,000 5,020,313
------------
14,960,837
------------
FEDERAL HOME LOAN BANK
DISCOUNT NOTES -- 4.7%
6.25% 04/03/95 8,785 8,781,950
------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 18.2%
7.00% 08/01/96 809 760,378
6.95% 09/15/96 5,197 5,054,027
6.50% 10/15/96 3,885 3,535,993
7.00% 06/15/97 3,000 2,821,263
7.00% 07/01/97 585 582,222
7.37% 10/17/97 5,000 4,996,300
7.31% 09/03/99 8,000 7,940,000
6.55% 04/02/03 4,000 3,740,360
5.78% 10/22/03 5,000 4,429,250
------------
33,859,793
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 18.5%
7.50% 06/25/95 2,000 1,994,906
8.50% 08/25/95 2,615 2,641,017
8.80% 11/10/95 3,000 3,042,810
7.50% 03/25/97 5,000 4,874,439
8.15% 05/11/98 2,500 2,573,100
6.50% 09/25/98 5,000 4,518,008
8.35% 11/10/99 5,000 5,225,250
6.625% 04/10/03 5,000 4,694,000
5.75% 12/25/03 5,000 4,758,097
------------
34,321,627
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 6.6%
7.00% 10/15/98 5,000 4,894,922
7.00% 01/15/99 2,328 2,263,060
6.50% 05/01/99 3,655 3,469,665
7.50% 06/01/00 1,748 1,689,728
------------
12,317,375
------------
TOTAL AGENCY OBLIGATIONS
(Cost $107,655,168) 104,241,582
------------
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 42.5%
U.S. TREASURY NOTES
5.875% 05/15/95 $11,000 $ 10,999,118
7.875% 07/15/96 5,000 5,077,650
6.50% 11/30/96 5,000 4,984,699
6.25% 01/31/97 5,000 4,961,300
5.50% 07/31/97 5,000 4,857,500
5.50% 09/30/97 3,000 2,908,620
5.75% 10/31/97 6,000 5,841,898
6.00% 12/31/97 5,000 4,893,400
5.625% 01/31/98 5,000 4,835,700
5.25% 07/31/98 5,000 4,747,900
5.125% 12/31/98 5,000 4,696,800
6.375% 07/15/99 5,000 4,878,150
6.00% 10/15/99 3,000 2,878,319
7.50% 10/31/99 7,000 7,115,359
7.25% 08/15/04 5,000 5,006,050
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $80,839,694) 78,682,463
------------
<CAPTION>
NUMBER
OF SHARES
---------
<S> <C> <C> <C>
TEMPORARY INVESTMENTS -- 0.0%
Smith Barney Money Market Fund
(Cost $8,158) 8,158 8,158
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $188,503,020*) 98.6% 182,932,203
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.4% 2,511,301
--------- ------------
NET ASSETS (Applicable to
12,963,965 Institutional
shares, 5,125,610 Service
shares, and 937,019 Series A
Investor shares outstanding) 100.0% $185,443,504
======== =============
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 54
INTERMEDIATE GOVERNMENT PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
-----------
<S> <C>
NET ASSET VALUE AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND SERIES A
INVESTOR SHARE ($185,443,504 / 19,026,594) $9.75
=====
OFFERING PRICE PER INSTITUTIONAL AND SERVICE
SHARE $9.75
=====
MAXIMUM OFFERING PRICE PER SERIES
A INVESTOR SHARE ($9.75 / .955) $10.21
======
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 125,344
Gross unrealized depreciation (5,696,161)
-----------
$(5,570,817)
===========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 55
THE PNC(R) FUND
OHIO TAX-FREE INCOME PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ---- ----------
<S> <C> <C> <C>
OHIO -- 92.5%
Akron, Bath, Copley Joint Township
Hospital District Revenue Bonds
Series 1993
5.50% 11/15/03 $250 $ 221,875
Akron, Bath, Copley Revenue Bonds
Series 1990 (Children's Hospital
Medical Center)
7.45% 11/15/00 100 113,375
Berea City School District Unlimited
Tax General Obligation Bonds Series
1993
7.50% 12/15/03 75 87,000
Brunswick Limited Tax Improvement
General Obligation Bonds Series 1994
6.30% 12/01/05 210 212,100
Butler County Hospital Facilities
Refunding Improvement Revenue Bonds
Series 1991 (Middletown Regional
Hospital)
6.75% 11/15/03 50 53,313
Cincinnati City School District
Unlimited Tax General Obligation
Bonds Series 1986
7.125% 12/01/02 60 65,250
Cincinnati Unlimited Tax General
Obligation Bonds Series 1995
5.40% 12/01/01 115 117,731
Clark County Public Improvement
General Obligation Bonds Series 1993
5.55% 12/01/03 200 192,250
Cleveland Airport System Improvement
Revenue Bonds Series 1994B
5.70% 01/01/04 150 150,562
Cleveland Public Power System
Improvement Revenue Bonds Series
1991B (First Mortgage)
7.00% 11/15/01 100 103,625
Columbus General Obligation Bonds
Series 1991
9.00% 09/15/96 100 106,250
Columbus Municipal Airport Authority
Revenue Bonds Series 1994A (Port
Columbus International Airport)
6.00% 01/01/04 150 150,938
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ---- ----------
<S> <C> <C> <C>
OHIO (CONTINUED)
Columbus Park, Recreation and Zoo
Unlimited Tax General Obligation
Bonds Series 1986
7.25% 07/01/01 $ 25 $ 28,094
Columbus Sewer Improvement Unlimited
Tax General Obligation Bonds Series
1991
9.00% 09/15/97 175 192,719
Cuyahoga County Hospital Improvement
Revenue Bonds (Cleveland Clinic
Foundation) Series 1989
6.75% 12/01/99 200 210,250
Cuyahoga County Hospital Refunding
Revenue Bonds Series 1994A (Fairview
General Hospital Project)
5.50% 02/15/04 200 180,750
Fairfield City School District
Unlimited Tax General Obligation
Bonds Series 1994
7.45% 12/01/14 300 332,250
Franklin County Hospital Revenue
Bonds Series 1991A (Children's
Hospital Project)
6.60% 11/01/11 150 155,625
Franklin County Hospital Revenue
Refunding and Improvement Bonds
Series 1993 (Doctor's Hospital
Project)
5.875% 12/01/03 330 297,824
Greene County Sewer System Revenue
Bonds Series 1993
5.50% 12/01/03 160 152,600
Hamilton County General Obligation
Bonds Series 1993
5.10% 12/01/03 200 182,500
Hamilton Waterworks Mortgage Revenue
Bonds Series 1991A
6.40% 10/15/07 25 26,469
Kettering Local School District
Unlimited Tax General Obligation
Bonds Series 1994
5.30% 12/01/05 250 231,250
Kings Local School District Unlimited
Tax General Obligation Bonds Series
1994
7.60% 12/01/05 200 221,000
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 56
OHIO TAX-FREE INCOME PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ---- ----------
<S> <C> <C> <C>
OHIO (CONTINUED)
Loveland City School District
Unlimited Tax General Obligation
Bonds Series 1992
6.65% 12/01/02 $145 $ 153,700
Medina Unlimited Tax General
Obligation Bonds Series 1986
7.25% 12/01/03 50 56,813
Montgomery County Hospital Revenue
Bonds Series 1989 (Kettering
Memorial Hospital)
7.375% 04/01/99 200 218,750
North Royalton City School District
Unlimited Tax General Obligation
Bonds Series 1994
6.625% 12/01/06 100 110,625
Northwestern Local School District
Wayne and Ashland Counties School
Improvement Unlimited Tax General
Obligation Bonds Series 1994
7.20% 12/01/10 300 342,750
Ohio Air Quality Development
Authority Revenue Bonds Series 1985
(Dayton Power and Light Company
Project)
9.50% 12/01/95 250 263,437
Ohio Building Authority Facilities
Pre-refunded Revenue Bonds Series
1988 (DAS Data Center Project A)
7.80% 10/01/97 45 49,106
Ohio Housing Finance Agency
Residential Mortgage Revenue Bonds
Series 1994B-2
6.35% 09/01/04 150 151,875
Ohio Housing Finance Agency Revenue
Bonds Series 1992A-2 (Single Family
Mortgage)
6.125% 03/01/05 275 275,343
Ohio State Building Authority Revenue
Bonds Series 1985A (Toledo
Government Center)
8.80% 10/01/95 25 26,188
Ohio State Building Authority Revenue
Bonds Series 1993A (Administration
Building Fund Project)
5.50% 10/01/03 200 190,000
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ---- ----------
<S> <C> <C> <C>
OHIO (CONTINUED)
Ohio State Higher Education
Facilities Commission Revenue Bonds
Series 1986 (Kenyon College Project)
7.125% 12/01/96 $ 55 $ 58,231
Ohio State Higher Education
Facilities Commission Revenue Bonds
Series 1994 (Ohio Dominican College)
6.625% 12/01/04 250 251,875
Ohio State Higher Education
Facilities Commission Revenue Bonds
Series 1994 (University of Dayton
Project)
5.80% 12/01/04 250 246,562
Ohio State Unlimited Tax General
Obligation Bonds Series 1995
6.00% 08/01/05 225 236,250
Ohio State Water Development
Authority Revenue Bonds Series 1989I
(Pure Water)
7.25% 06/01/97 50 54,188
Olentangy Local School District
Unlimited Tax General Obligation
Bonds Series 1995A
6.00% 12/01/08 225 229,780
Orville Water System Revenue Bonds
6.00% 11/15/02 50 50,438
Ottawa County Sanitary Sewer System
Refunding Revenue Bonds Series 1989
(Danbury Project)
7.375% 10/01/99 100 111,500
Rural Loraine Water Authority
Resource Revenue Bonds Series 1988
7.75% 10/01/98 85 94,350
Summit County Hospital Revenue Bonds
Series 1994A (Cuyahoga Falls General
Hospital Project)
6.65% 07/01/14 200 193,750
University of Cincinnati General
Receipts Revenue Bonds Series 1991G
7.00% 06/01/01 250 270,000
University of Toledo General Receipts
Revenue Bonds Series 1992A
5.75% 12/01/02 200 198,500
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 57
OHIO TAX-FREE INCOME PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ---- ----------
<S> <C> <C> <C>
OHIO (CONTINUED)
Wadsworth Housing Development Cor-
poration Mortgage Revenue Bonds
Series 1993
(Medina Metropolitan Housing Au-
thority Projects)
5.75% 03/01/06 $130 $ 127,238
Warren County Sewer System Revenue
Bonds Series 1992
6.70% 12/01/02 115 122,763
Worthington City School District
Pre-refunded Unlimited Tax General
Obligation Bonds Series 1989
7.45% 12/01/99 45 50,456
----------
7,920,068
----------
GUAM -- 2.9%
Guam Power Authority Revenue Bonds
Series 1994A
6.625% 10/01/04 250 250,625
----------
PUERTO RICO -- 2.7%
Puerto Rico Commonwealth Highway and
Transportation Authority Refunding
Revenue Bonds Series 1993W
5.50% 07/01/03 250 227,188
----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $8,508,579) 98.1% 8,397,881
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.9% 160,303
--------- ----------
<CAPTION>
VALUE
----------
<S> <C> <C>
NET ASSETS (Applicable to 8,419
Institutional shares, 511,635 Service
shares, 343,288 Series A Investor shares
and 6,353 Series B Investor shares
outstanding) 100.0% $8,558,184
======= ==========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL
AND SERVICE SHARE
($5,117,564 / 520,054) $9.84
=====
NET ASSET VALUE AND REDEMPTION
PRICE PER SERIES A INVESTOR SHARE
($3,378,107 / 343,288) $9.84
=====
MAXIMUM OFFERING PRICE PER
SERIES A INVESTOR SHARE
($9.84 / .955) $10.30
======
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE (SUBJECT TO
CONTINGENT DEFERRED SALES CHARGE) PER
SERIES B INVESTOR SHARE
($62,513 / 6,353) $9.84
=====
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 118,942
Gross unrealized depreciation (229,640)
---------
$(110,698)
==========
</TABLE>
See accompanying notes to financial statements.
13
<PAGE> 58
THE PNC(R) FUND
PENNSYLVANIA TAX-FREE INCOME PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
MUNICIPAL BONDS -- 96.8%
PENNSYLVANIA -- 95.5%
Allegheny County General
Obligation Bonds Series 1991C-38
6.20% 09/01/01 $ 250 $ 265,000
Allegheny County General
Obligation Bonds Series 1993C-42
5.00% 10/01/10 1,000 902,500
Allegheny County Hospital
Development Authority Revenue
Bonds (Mercy Hospital of
Pittsburgh) Series 1986
7.375% 04/01/15 750 771,563
Allegheny County Hospital
Development Authority Revenue
Bonds (Mercy Hospital of
Pittsburgh) Series 1991
6.35% 04/01/00 300 315,375
Allegheny County Residential
Finance Authority Mortgage
Revenue Bonds Single Family
Series 1994Y
6.20% 05/01/17 400 397,500
Berks County General Obligation
Bonds Series 1992
5.75% 11/15/12 300 295,125
Bristol Township School District
Series 1993A
5.10% 02/15/08 1,000 942,500
Cambria County General Obligation
Bonds Series 2000
8.25% 06/01/00 600 658,500
Central Bucks School District
General Obligation Revenue Bonds
Series 1993A
5.15% 05/15/08 1,015 964,250
Centre County General Obligation
Bonds Series 1993A
5.30% 07/01/18 530 480,975
Charleroi School District Revenue
Bonds Series 1992C
5.75% 11/15/13 300 295,875
Chester County General Obligation
Bonds Series 1991
6.70% 12/15/04 385 410,506
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
Chester County Solid Waste
Authority -- Guaranteed Solid
Waste Revenue Bonds Series 1990A
6.75% 01/01/99 $ 250 $ 263,750
Chester Upland School Authority
Revenue Bonds Series 1994
5.60% 11/15/14 850 802,188
Coatesville School District
General Obligation Bonds Series
1991
6.40% 01/15/05 500 534,375
Dauphin County General Authority
Revenue Bonds Series 1986
5.30% 06/01/05 535 508,250
5.40% 06/01/06 565 534,631
5.50% 06/01/07 550 519,063
6.85% 06/01/09 800 842,000
Deer Lakes School District General
Obligation Bonds Series 1995
6.35% 01/15/14 1,000 1,018,750
6.45% 01/15/19 1,300 1,329,250
Delaware County Authority Health
Care Revenue Bonds (Mercy Health
Corporation of Southeastern)
Series 1993B
6.00% 11/15/07 2,000 1,855,000
Duquesne School District General
Obligation Bonds Series 1993
5.75% 10/01/18 1,000 926,250
Erie County Prison Authority Lease
Revenue Bonds Series 1991
6.25% 11/01/01 500 533,125
Fox Chapel School District General
Obligation Bonds Series 1993
5.50% 08/15/11 575 543,375
Harrisburg Authority Lease Revenue
Bonds Series 1991
6.50% 06/01/04 500 533,125
Indiana County Hospital Authority
Revenue Bonds Series 1992A
7.125% 07/01/23 1,500 1,490,624
Lancaster County Hospital
Authority Revenue Bonds (Health
Center-Masonic Homes Project)
Series 1994
5.30% 11/15/08 500 468,750
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 59
PENNSYLVANIA TAX-FREE INCOME PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Lancaster Higher Education Author-
ity College Revenue Bonds
(Franklin and Marshall College
Project) Series 1993
5.65% 04/15/10 $ 500 $ 489,375
Lebanon County Good Samaritan
Hospital Authority Revenue Bonds
(Good Samaritan Hospital Project)
Series 1993
5.55% 11/15/04 355 333,700
6.00% 11/15/09 500 457,500
6.00% 11/15/18 750 660,938
Ligonier Valley School District
General Obligation Bonds Series
1994
5.65% 03/01/14 2,000 1,932,500
Lycoming County Authority Hospital
Lease Revenue Bonds (Divine
Providence-Sisters) Series 1990B
7.75% 07/01/16 2,000 2,155,000
Montgomery County Higher Education
& Health Authority Revenue Bonds
(Frankford Hospital) Series 1986
7.875% 01/01/19 500 513,750
Moon Township Water and Sewer
Authority Revenue Bonds
6.70% 12/01/19 1,000 1,022,500
New Garden Township Sewer
Authority Revenue Bonds Series
1991
7.00% 03/01/15 420 447,300
Northampton County Higher
Education Authority Revenue Bonds
(Moravian College) Series 1994
6.10% 07/01/12 1,950 1,859,812
Oil City School District Series
1994B
5.30% 05/15/11 565 529,688
Pennsbury School District Series
1994
6.65% 08/15/09 685 734,663
Pennsylvania Certificates of
Participation Series 1993A
5.20% 07/01/05 400 387,500
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
Pennsylvania Common Turnpike
Revenue Bonds Series 1991L
6.50% 06/01/04 $ 445 $ 476,706
Pennsylvania Finance Authority
Revenue Bonds (Municipal Capital
Improvement Project) Series 1993
6.60% 11/01/09 2,760 2,863,500
Pennsylvania General Obligation
Bonds Series 1991A
6.50% 11/01/05 250 266,250
Pennsylvania Higher Educational
Facilities Authority Revenue
Bonds (Thomas Jefferson
University) Series 1993A
5.15% 11/01/11 500 453,750
Pennsylvania Higher Educational
Facilities Authority Revenue
Bonds (Philadelphia College of
Textiles and Science) Series 1993
4.95% 02/01/02 255 243,206
5.15% 02/01/04 1,230 1,154,662
5.45% 02/01/07 285 269,681
Pennsylvania Infrastructure
Investment Authority Revenue
Bonds Series 1990B
6.80% 09/01/10 2,000 2,110,000
Pennsylvania Intergovernmental
Cooperative Authority Special Tax
Revenue Bonds (City of
Philadelphia Funding Program)
Series 1993
5.25% 06/15/06 1,000 965,000
5.75% 06/15/15 1,000 956,250
Pennsylvania State University
Revenue Bonds Series 1992
5.50% 08/15/16 2,000 1,870,000
Philadelphia Authority Industrial
Development Revenue Bonds (PGH
Development Corporation) Series
1993
5.25% 07/01/17 1,000 871,250
5.25% 07/01/17 810 705,713
Philadelphia Hospital & Higher
Education Facilities Authority
Revenue Bonds (Frankford
Hospital) Series 1993A
6.00% 06/01/23 815 691,731
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 60
PENNSYLVANIA TAX-FREE INCOME PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
PENNSYLVANIA (CONTINUED)
Philadelphia Hospital & Higher
Education Facilities Authority
Revenue Bonds (Children Seashore
House) Series 1988
7.75% 08/15/17 $ 750 $ 845,625
Philadelphia Hospital and Higher
Education Authority Facilities
Authority Revenue Bonds (Friends
Hospital) Series 1993
5.95% 05/01/04 500 483,750
6.20% 05/01/11 500 442,500
Philadelphia Hospital and Higher
Education Facilities Authority
Revenue Bonds (Wills Eye
Hospital) Series 1994
5.25% 07/01/02 500 483,125
Philadelphia Hospital and Higher
Education Facilities Authority
Revenue Bonds (Graduate Health
Systems) Series 1993A
5.10% 07/01/98 470 459,425
Philadelphia Municipal Authority
Revenue Bonds (Justice Lease)
Series 1991B
7.10% 11/15/11 2,500 2,821,874
Philadelphia Municipal Authority
Revenue Bonds Series 1993A
5.625% 11/15/14 1,000 948,750
Philadelphia School District
General Obligation Bonds Series
1991A
6.70% 07/01/99 250 265,938
Pittsburgh Water and Sewer
Authority Revenue Bonds Series
1991A
6.60% 09/01/02 250 274,688
Scranton-Lackawanna Health and
Welfare Authority Revenue Bonds
(University of Scranton Project)
Series 1990B
7.40% 06/15/00 200 223,750
Southeastern Pennsylvania
Transportation Authority Special
Revenue Bonds Series 1995A
5.875% 03/01/09 1,230 1,243,837
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
State Public School Building
Authority College Revenue Bonds
(Delaware County Community
College) Series 1993V
5.375% 10/01/17 $1,000 $ 937,500
Trinity School District General
Obligation Bonds Series 1993A
5.50% 11/01/11 2,000 1,927,500
Westmoreland County Industrial
Development Authority Revenue
Bonds (Westmoreland County Health
Systems) Series 1992A
6.00% 07/01/11 200 201,250
York County Hospital Authority
Revenue Bonds (Hanover General
Hospital) Series 1994A
4.60% 12/01/04 605 564,919
4.70% 12/01/05 680 631,550
4.80% 12/01/06 635 587,375
-----------
58,167,456
-----------
PUERTO RICO -- 1.3%
Puerto Rico Electric Power
Authority Revenue Bonds Series
1991P
6.75% 07/01/03 250 270,000
Puerto Rico Public Buildings
Authority Revenue Bonds Series
1992J
6.50% 07/01/03 500 533,750
-----------
803,750
-----------
TOTAL MUNICIPAL BONDS
(Cost $60,122,932*) 58,971,206
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES
---------
<S> <C> <C> <C>
TEMPORARY INVESTMENTS -- 4.8%
Smith Barney Tax Free Money
Market Fund 1,900,914 1,900,914
Vanguard Pennsylvania Tax Free
Money Market Fund 1,000,000 1,000,000
-----------
(Cost $2,900,914) 2,900,914
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $63,023,846*) 101.6% 61,872,120
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 61
PENNSYLVANIA TAX-FREE INCOME PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
-----------
<S> <C> <C> <C>
LIABILITIES IN EXCESS OF OTHER
ASSETS (1.6%) $(1,001,021)
------ ----------
NET ASSETS (Applicable to 115,231
Institutional shares,
1,286,171 Service shares,
4,427,574 Series A Investor
shares and 233,149 Series B
Investor shares outstanding) 100.0% $60,871,099
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER INSTITUTIONAL AND
SERVICE SHARE
($14,071,836 / 1,401,402) $10.04
======
NET ASSET VALUE AND REDEMPTION PRICE PER
SERIES A INVESTOR SHARE
($44,458,184 / 4,427,574) $10.04
======
MAXIMUM OFFERING PRICE PER SERIES A INVESTOR
SHARE
($10.04 / .955) $10.51
======
<CAPTION>
VALUE
-----------
<S> <C>
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE (SUBJECT TO CONTINGENT
DEFERRED SALES CHARGE) PER SERIES B
INVESTOR SHARE
($2,341,079 / 233,149) $10.04
======
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross
unrealized appreciation (depreciation) on a tax basis is
as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 418,519
Gross unrealized depreciation (1,570,245)
-----------
$(1,151,726)
===========
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 62
THE PNC(R) FUND
SHORT-TERM BOND PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
AGENCY OBLIGATIONS -- 17.4%
FEDERAL FARM CREDIT BANK BONDS -- 12.5%
6.70% 09/30/96 $2,000 $ 1,997,180
-----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 4.9%
7.25% 04/25/96 792 790,495
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $2,790,178) 2,787,675
-----------
ASSET BACKED SECURITIES -- 42.7%
AUTOMOTIVE -- 0.4%
Toyota Motor Credit Auto
Receivable
3.90% 08/17/98 65 63,113
-----------
BANKS -- 9.9%
CoreStates Home Equity Trust
5.10% 03/15/96 735 677,404
Union Federal Master Trust
4.875% 11/15/95 922 906,312
-----------
1,583,716
-----------
BROKERAGE -- 4.4%
Merrill Lynch Asset Backed Corp.
5.50% 07/15/95 715 708,121
-----------
FINANCE -- 28.0%
Advanta Mortgage Loan Trust
5.55% 03/15/97 825 775,621
John Deere Owner Trust
4.10% 10/15/00 819 802,180
The Money Store Home Equity Trust
5.075% 11/15/95 1,218 1,166,094
United Companies Financial Corp.
6.575% 04/10/96 1,747 1,730,722
-----------
4,474,617
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $7,036,096) 6,829,567
-----------
CORPORATE BONDS -- 17.4%
BROKERAGE -- 6.2%
Lehman Brothers, Inc. Subordinated
Notes
7.375% 08/15/97 1,000 990,000
-----------
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ -----------
<S> <C> <C> <C>
DRUGS & HEALTH CARE -- 5.4%
American Home Products Corp.
7.70% 02/15/00 $ 850 $ 857,437
-----------
FINANCE -- 5.8%
Great Western Financial Corp.
6.375% 07/01/00 1,000 937,188
-----------
TOTAL CORPORATE BONDS
(Cost $2,851,507) 2,784,625
-----------
MEDIUM TERM NOTES -- 15.1%
AUTOMOTIVE -- 6.0%
Chrysler Financial Corp.
5.08% 01/27/97 1,000 968,750
-----------
BROKERAGE -- 6.0%
Salomon Brothers, Inc.
5.26% 02/10/99 1,000 951,250
-----------
TRUCKING & FREIGHT -- 3.1%
Ryder System, Inc.
7.66% 09/15/99 500 500,000
-----------
TOTAL MEDIUM TERM NOTES
(Cost $2,500,000) 2,420,000
-----------
U.S. TREASURY NOTES -- 6.3%
6.875% 02/28/97 1,000 1,001,750
-----------
(Cost $1,003,313)
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF
SHARES
--------
<S> <C> <C>
TEMPORARY INVESTMENTS -- 1.0%
Smith Barney Money Market Fund
(Cost $173,187) 173,187 173,187
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $16,354,281*) 99.9% 15,996,804
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 11,299
------ -----------
NET ASSETS (Applicable to
1,043,327 Institutional shares,
604,373 Service shares and
27,166 Series A Investor shares
outstanding) 100.0% $16,008,103
====== ===========
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 63
SHORT-TERM BOND PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
-----------
<S> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER INSTITUTIONAL, SERVICE AND
SERIES A INVESTOR SHARE
($16,008,103 / 1,674,866) $9.56
=====
OFFERING PRICE PER INSTITUTIONAL AND SERVICE
SHARE $9.56
=====
MAXIMUM OFFERING PRICE PER SERIES A INVESTOR
SHARE
($9.56 / .955) $10.01
======
</TABLE>
- -------------
* Also cost for Federal tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 8,487
Gross unrealized depreciation (365,964)
------------
$(357,477)
============
</TABLE>
See accompanying notes to financial statements.
19
<PAGE> 64
THE PNC(R) FUND
INTERMEDIATE-TERM BOND PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
AGENCY OBLIGATIONS -- 37.8%
FEDERAL HOME LOAN BANK BONDS -- 5.4%
5.82% 05/17/95 $3,000 $ 2,992,350
6.99% 04/25/97 2,500 2,497,000
7.04% 05/24/99 2,000 1,971,660
------------
7,461,010
------------
FEDERAL HOME LOAN BANK DISCOUNT
NOTES -- 5.4%
6.25% 04/03/95 2,350 2,349,184
7.98% 03/15/00 5,000 5,010,938
------------
7,360,122
------------
FEDERAL HOME LOAN MORTGAGE
CORPORATION -- 12.1%
4.75% 05/15/96 2,000 1,950,047
4.75% 03/15/97 3,000 2,852,593
5.50% 06/15/97 5,000 4,756,621
9.50% 08/15/97 287 295,486
9.00% 09/15/97 268 270,775
8.50% 08/15/98 191 192,392
8.50% 09/15/98 67 67,376
9.00% 09/15/98 34 33,794
8.50% 10/15/98 66 67,725
7.00% 07/15/00 661 642,442
7.00% 08/15/00 1,241 1,205,910
9.00% 12/01/01 70 70,478
9.50% 07/01/03 155 159,498
7.05% 03/24/04 1,500 1,435,313
7.74% 06/01/04 2,000 1,988,060
9.50% 11/01/04 281 289,134
9.50% 01/01/05 301 309,979
8.50% 01/01/05 63 63,817
9.00% 12/01/16 31 31,491
------------
16,682,931
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 11.7%
8.80% 11/10/95 $6,000 $ 6,085,619
7.60% 01/10/97 2,500 2,528,700
5.75% 06/25/98 3,304 3,209,010
8.70% 06/10/99 1,000 1,052,470
8.25% 12/18/00 2,000 2,093,680
9.00% 08/01/02 137 142,506
6.95% 09/10/02 1,000 958,600
9.50% 03/01/05 38 39,469
------------
16,110,054
------------
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 2.5%
8.00% 05/15/99 $ 342 $ 345,432
7.50% 04/15/07 49 48,808
7.50% 06/15/07 40 40,097
7.50% 07/15/07 57 56,642
7.50% 08/15/07 39 38,736
7.50% 10/15/07 81 79,701
7.50% 12/15/07 2,789 2,765,663
9.50% 08/15/18 29 30,074
9.50% 04/15/19 59 61,838
------------
3,466,991
------------
TENNESSEE VALLEY AUTHORITY -- 0.7%
6.125% 07/15/03 1,000 910,000
------------
TOTAL AGENCY OBLIGATIONS
(Cost $52,381,127) 51,991,108
------------
ASSET BACKED SECURITIES -- 7.0%
CREDIT INSTITUTIONS -- 2.2%
Discover Card Master Trust I
6.315% 04/16/02 3,000 3,000,000
------------
FINANCE -- 4.8%
Capital Auto Receivables
Asset Trust
4.90% 02/16/98 1,910 1,902,573
First Chicago Master Trust II
8.40% 06/15/98 500 507,050
Merrill Lynch Asset Backed Corp.
1992-1 Class A2
5.50% 07/15/95 1,431 1,416,242
The Money Store Home Equity Trust
7.625% 12/15/95 1,884 1,883,608
Union Federal Master Trust
4.875% 11/15/95 922 906,312
------------
6,615,785
------------
TOTAL ASSET BACKED SECURITIES
(Cost $9,623,487) 9,615,785
------------
CORPORATE BONDS -- 15.0%
BANKS -- 2.4%
National Westminster Bank
9.45% 05/01/01 1,250 1,354,688
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 65
INTERMEDIATE-TERM BOND PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
BANKS (CONTINUED)
NationsBank Corp.
7.50% 02/15/97 $2,000 $ 2,010,000
------------
3,364,688
------------
DRUGS & HEALTH CARE -- 3.7%
American Home Products Corp.
7.70% 02/15/00 5,000 5,043,750
------------
FINANCE -- 7.4%
American General Financial Corp.
8.00% 02/15/00 4,000 4,055,000
Associates Corp. of North America
9.70% 05/01/97 1,000 1,047,500
Norwest Financial Corp.
8.375% 01/15/00 5,000 5,145,313
------------
10,247,813
------------
YANKEE -- 1.5%
Bell Telephone, Canada
7.75% 04/01/06 1,000 1,001,250
Noranda, Inc.
8.00% 06/01/03 1,000 1,001,250
------------
2,002,500
------------
TOTAL CORPORATE BONDS
(Cost $20,690,548) 20,658,751
------------
MEDIUM TERM NOTES -- 6.5%
AUTOMOTIVE -- 4.3%
Chrysler Financial Corp.
5.08% 01/27/97 3,500 3,390,625
General Motors Acceptance Corp.
7.75% 01/24/97 2,500 2,518,750
------------
5,909,375
------------
TRUCKING & FREIGHT -- 2.2%
Ryder Systems, Inc.
7.66% 09/15/99 3,000 3,000,000
------------
TOTAL MEDIUM TERM NOTES
(Cost $9,098,282) 8,909,375
------------
U.S. TREASURY OBLIGATIONS -- 32.3%
U.S. TREASURY NOTES
4.25% 05/15/96 4,000 3,903,040
<CAPTION>
PAR
MATURITY (000) VALUE
--------- ------ ------------
<S> <C> <C> <C>
U.S. TREASURY NOTES (CONTINUED)
6.375% 06/30/97 $1,100 $ 1,090,276
7.875% 01/15/98 3,000 3,073,200
5.25% 07/31/98 10,000 9,495,799
7.50% 10/31/99 4,000 4,065,920
7.75% 12/31/99 10,000 10,268,399
6.375% 01/15/00 1,000 972,850
7.50% 05/15/05 5,000 5,107,550
7.75% 02/15/01 2,300 2,369,299
6.25% 02/15/03 1,000 942,440
7.25% 05/15/04 3,000 3,003,600
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $44,647,832) 44,292,373
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $136,441,276*) 98.6% 135,467,392
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.4% 1,984,647
------ ------------
NET ASSETS (Applicable to
11,099,694 Institutional shares,
3,900,712 Service shares and
48,496 Series A Investor shares
outstanding) 100.0% $137,452,039
====== =============
NET ASSET VALUE AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND SERIES
A INVESTOR SHARES
($137,452,039 / 15,048,902) $9.13
=====
OFFERING PRICE PER
INSTITUTIONAL AND
SERVICE SHARE $9.13
=====
MAXIMUM OFFERING PRICE PER
SERIES A INVESTOR SHARE
($9.13 / .955) $9.56
=====
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 759,557
Gross unrealized depreciation (1,733,441)
-----------
$ (973,884)
===========
</TABLE>
See accompanying notes to financial statements.
21
<PAGE> 66
THE PNC(R) FUND
GOVERNMENT INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ----------
<S> <C> <C> <C>
AGENCY OBLIGATIONS -- 44.6%
FEDERAL HOME LOAN MORTGAGE
CORPORATION -- 14.9%
8.53% 02/02/05 $ 1,000 $1,036,110
----------
FEDERAL NATIONAL MORTGAGE
BONDS -- 14.8%
8.55% 12/10/04 1,000 1,021,540
----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 14.9%
9.00% 11/15/24 998 1,030,812
----------
TOTAL AGENCY OBLIGATIONS
(Cost $2,995,875) 3,088,462
----------
U.S. TREASURY OBLIGATIONS -- 55.4%
U.S. TREASURY NOTES
7.25% 08/15/04 $ 416 $ 416,503
7.875% 11/15/04 2,281 2,381,409
7.50% 02/15/05 1,009 1,030,704
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $3,758,523) 3,828,616
----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $6,754,398) 100% $6,917,078
====== ==========
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross
unrealized appreciation on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $162,680
========
</TABLE>
See accompanying notes to financial statements.
22
<PAGE> 67
THE PNC(R) FUND
GOVERNMENT INCOME PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at value (Cost $6,754,398).......................................... $ 6,917,078
Cash............................................................................ 343
Interest receivable............................................................. 128,029
Advisor reimbursement receivable................................................ 23,313
Capital shares sold receivable.................................................. 365,116
Prepaid expenses................................................................ 59,453
-----------
TOTAL ASSETS............................................................ 7,493,332
-----------
LIABILITIES
Capital shares redeemed payable................................................. 3,990
Dividends payable............................................................... 38,028
Accrued expenses payable........................................................ 60,997
-----------
TOTAL LIABILITIES....................................................... 103,015
-----------
NET ASSETS (Applicable to 162,824 Series A Investor shares and 565,057 Series B
Investor shares outstanding).................................................... $ 7,390,317
==========
NET ASSET VALUE AND REDEMPTION PRICE PER SERIES A INVESTOR SHARE ($1,653,239 /
162,824)........................................................................ $10.15
=======
MAXIMUM OFFERING PRICE PER SERIES A INVESTOR SHARE ($10.15 / .955)................ $10.63
=======
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE (subject to contingent
deferred sales charge) PER SERIES B INVESTOR SHARE
($5,737,078 / 565,057).......................................................... $10.15
=======
</TABLE>
See accompanying notes to financial statements.
23
<PAGE> 68
THE PNC(R) FUND
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
OHIO
MANAGED TAX-FREE INTERMEDIATE TAX-FREE
INCOME INCOME GOVERNMENT INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- -------- ----------- ---------
<S> <C> <C> <C> <C>
Investment Income:
Interest................................................. $17,291,974 $276,312 $ 6,043,328 $ 241,037
----------- -------- ----------- ---------
Expenses:
Investment advisory fee.................................. 1,197,064 23,479 473,522 $ 20,289
Administration fee....................................... 478,826 9,391 189,409 8,116
Custodian fee............................................ 42,618 6,090 20,068 6,484
Transfer agent fee....................................... 13,711 10,645 11,022 9,604
Service fees............................................. 93,276 3,308 71,886 5,745
Distribution fees........................................ 24,408 14,965 10,767 3,581
Legal and audit.......................................... 24,532 464 9,849 1,671
Printing................................................. 15,924 308 6,388 275
Registration fees and expenses........................... 12,465 12,465 13,940 1,247
Organization............................................. 131 5,025 2,706 1,232
Trustees' fees and officer's salary...................... 3,884 75 1,567 67
Other.................................................... 8,702 2,625 4,685 3,606
----------- -------- ----------- ---------
1,915,541 88,840 815,809 61,917
Less fees voluntarily waived and expenses reimbursed..... (481,085) (47,089) (354,339) (48,534)
----------- -------- ----------- ---------
Total expenses......................................... 1,434,456 41,751 461,470 13,383
----------- -------- ----------- ---------
Net investment income...................................... 15,857,518 234,561 5,581,858 227,654
----------- -------- ----------- ---------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) from investment transactions.... (4,136,720) 11,979 (2,977,290) (168,265)
Change in unrealized appreciation of investments......... 13,516,527 325,886 4,953,352 360,574
----------- -------- ----------- ---------
Net gain on investments.................................. 9,379,807 337,865 1,976,062 192,309
----------- -------- ----------- ---------
Net increase in net assets resulting from operations..... $25,237,325 $572,426 $ 7,557,920 $ 419,963
========== ======== ========== =========
</TABLE>
See accompanying notes to financial statements.
24
<PAGE> 69
THE PNC(R) FUND
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX MONTHS ENDED MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PENNSYLVANIA
TAX-FREE SHORT-TERM INTERMEDIATE GOVERNMENT
INCOME BOND TERM BOND INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(1)
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Investment Income:
Interest................................................. $ 1,714,147 $ 611,287 $ 3,963,073 $143,912
------------ ---------- ------------ ----------
Expenses:
Investment advisory fee.................................. 141,528 52,691 299,568 9,654
Administration fee....................................... 56,611 21,076 119,827 3,862
Custodian fee............................................ 7,520 8,083 16,923 5,871
Transfer agent fee....................................... 19,548 8,097 10,741 10,548
Service fees............................................. 15,293 6,298 43,521 2,690
Distribution fees........................................ 101,583 354 416 11,525
Legal and audit.......................................... 3,058 1,460 5,972 183
Printing................................................. 2,416 1,143 3,813 114
Registration fees and expenses........................... 2,493 11,628 13,879 1,874
Organization............................................. 1,345 2,182 2,279 2,983
Trustees' fees and officer's salary...................... 601 294 946 28
Other.................................................... 5,601 1,602 3,995 51
------------ ---------- ------------ ----------
357,597 114,908 521,880 49,383
Less fees voluntarily waived and expenses reimbursed..... (99,195) (66,103) (208,332) (35,168)
------------ ---------- ------------ ----------
Total expenses......................................... 258,402 48,805 313,548 14,215
------------ ---------- ------------ ----------
Net investment income...................................... 1,455,745 562,482 3,649,525 129,697
------------ ---------- ------------ ----------
Realized and unrealized gain (loss) on investments:
Net realized loss from investment transactions........... (1,076,333) (273,282) (883,909) (14,621)
Change in unrealized appreciation of investments......... 2,252,735 203,056 2,537,689 162,680
------------ ---------- ------------ ----------
Net gain (loss) on investments........................... 1,176,402 (70,226) 1,653,780 148,059
------------ ---------- ------------ ----------
Net increase in net assets resulting from operations..... $ 2,632,147 $ 492,256 $ 5,303,305 $277,756
========== ========= ========= =========
</TABLE>
- -------------
(1) October 3, 1994 (commencement of operations) through March 31, 1995.
See accompanying notes to financial statements.
25
<PAGE> 70
THE PNC(R) FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MANAGED INCOME PORTFOLIO TAX-FREE INCOME PORTFOLIO
------------------------------- -----------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
3/31/95 YEAR ENDED 3/31/95 YEAR ENDED
(UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94
---------------- ------------ ---------------- ----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations
Net investment income............................... $ 15,857,518 $ 24,284,351 $ 234,561 $ 437,596
Net gain (loss) on investments...................... 9,379,807 (44,710,814) 337,865 (902,194)
---------------- ------------ --------------- ----------
Net increase (decrease) in net assets resulting
from operations................................... 25,237,325 (20,426,463) 572,426 (464,598)
---------------- ------------ --------------- ----------
Distributions to shareholders from
Net investment income
Institutional Shares.............................. (13,108,767) (21,168,266) (2,451) (27,983)
Service Shares.................................... (2,410,944) (2,559,717) (69,027) (66,611)
Series A Investor Shares.......................... (337,807) (556,368) (163,489) (341,872)
---------------- ------------ --------------- ----------
Total distributions from net investment
income...................................... (15,857,518) (24,284,351) (234,967) (436,466)
---------------- ------------ --------------- ----------
In excess of net investment income
Institutional Shares.............................. (456,516) (955,052) -- --
Service Shares.................................... (83,962) (115,487) -- --
Series A Investor Shares.......................... (11,764) (25,102) -- --
---------------- ------------ --------------- ----------
Total distributions in excess of net
investment income........................... (552,242) (1,095,641) -- --
---------------- ------------ --------------- ----------
Net realized gains
Institutional Shares.............................. -- (4,274,701) (191) (21,944)
Service Shares.................................... -- (352,557) (5,402) (31,866)
Series A Investor Shares.......................... -- (108,326) (13,686) (235,722)
---------------- ------------ --------------- ----------
Total distributions from net realized gains... -- (4,735,584) (19,279) (289,532)
---------------- ------------ --------------- ----------
In excess of net realized gains
Institutional Shares.............................. -- (439,375) -- --
Service Shares.................................... -- (36,239) -- --
Series A Investor Shares.......................... -- (11,134) -- --
---------------- ------------ --------------- ----------
Total distributions in excess of net
realized gains.............................. -- (486,748) -- --
---------------- ------------ --------------- ----------
Total distributions to shareholders........... (16,409,760) (30,602,324) (254,246) (725,998)
---------------- ------------ --------------- ----------
Capital share transactions............................ 20,320,845 160,300,119 450,458 1,264,721
---------------- ------------ --------------- ----------
Total increase in net assets.................. 29,148,410 109,271,332 768,638 74,125
Net assets:
Beginning of period................................. 473,636,355 364,365,023 9,213,354 9,139,229
---------------- ------------ --------------- ----------
End of period....................................... $502,784,765 $473,636,355 $9,981,992 $9,213,354
================ ============= =============== ============
</TABLE>
See accompanying notes to financial statements.
26
<PAGE> 71
THE PNC(R) FUND
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
INTERMEDIATE OHIO TAX-FREE PENNSYLVANIA TAX-FREE
GOVERNMENT PORTFOLIO INCOME PORTFOLIO INCOME PORTFOLIO
---------------------------- ------------------------- --------------------------
FOR THE FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS SIX MONTHS FOR THE
ENDED YEAR ENDED FOR THE ENDED YEAR
3/31/95 ENDED 3/31/95 YEAR ENDED 3/31/95 ENDED
(UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94
------------ ------------ ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations
Net investment income............... $ 5,581,858 $ 10,008,303 $ 227,654 $ 367,913 $1,455,745.. $ 2,792,738
Net gain (loss) on investments...... 1,976,062 (16,040,314) 192,309 (686,251) 1,176,402.. (4,792,774)
------------ ------------ ----------- ---------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations........................ 7,557,920 (6,032,011) 419,963 (318,338) 2,632,147.. (2,000,036)
------------ ------------ ----------- ---------- ----------- -----------
Distributions to shareholders from
Net investment income
Institutional Shares.............. (3,726,468) (7,450,156) (2,703) (88,527) (21,822) (15,967)
Service Shares.................... (1,651,386) (2,071,221) (127,423) (103,043) (299,022) (490,091)
Series A Investor Shares.......... (248,617) (427,436) (96,887) (176,343) (1,114,668) (2,289,938)
Series B Investor Shares.......... -- -- (641) -- (20,233) --
------------ ------------ ----------- ---------- ----------- -----------
Total distributions from net
investment income........... (5,626,471) (9,948,813) (227,654) (367,913) (1,455,745) (2,795,996)
------------ ------------ ----------- ---------- ----------- -----------
Net realized gains
Institutional Shares.............. -- (1,220,708) -- (4,339) -- (280)
Service Shares.................... -- (251,878) -- (1,752) -- (18,964)
Series A Investor Shares.......... -- (68,191) -- (5,046) -- (108,860)
Series B Investor Shares.......... -- -- -- -- -- --
------------ ------------ ----------- ---------- ----------- -----------
Total distributions from net
realized gains.............. -- (1,540,777) -- (11,137) -- (128,104)
------------ ------------ ----------- ---------- ----------- -----------
Total distributions to
shareholders................ (5,626,471) (11,489,590) (227,654) (379,050) (1,455,745) (2,924,100)
------------ ------------ ----------- ---------- ----------- -----------
Capital share transactions............ (14,781,892) 56,048,683 (14,349) 4,108,295 975,606 23,558,899
------------ ------------ ----------- ---------- ----------- -----------
Total increase (decrease) in
net assets.................. (12,850,443) 38,527,082 177,960 3,410,907 2,152,008.. 18,634,763
Net assets:
Beginning of period............... 198,293,947 159,766,865 8,380,224 4,969,317 58,719,091.. 40,084,328
------------ ------------ ----------- ---------- ----------- -----------
End of period..................... $185,443,504 $198,293,947 $8,558,184 $8,380,224 $60,871,099.. $58,719,091
============= ============= ============ ========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
27
<PAGE> 72
THE PNC(R) FUND
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
GOVERNMENT INCOME
INTERMEDIATE-TERM BOND PORTFOLIO
SHORT-TERM BOND PORTFOLIO PORTFOLIO -----------------
------------------------- --------------------------- FOR THE PERIOD
FOR THE FOR THE 10/03/94(1)
SIX MONTHS FOR THE SIX MONTHS FOR THE THROUGH
3/31/95 YEAR ENDED 3/31/95 YEAR ENDED 3/31/95
(UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94 (UNAUDITED)
----------- ----------- ------------ ------------ -----------------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations
Net investment income...................... $ 562,482 $ 1,481,277 $ 3,649,525 $3,655,792 $ 129,697
Net gain (loss) on investments............. (70,226) (1,622,114) 1,653,780 (5,600,277) 148,059
----------- ----------- ------------ ------------ -----------------
Net increase (decrease) in net assets
resulting from operations................ 492,256 (140,837) 5,303,305 (1,944,485) 277,756
----------- ----------- ------------ ------------ -----------------
Distributions to shareholders from
Net investment income
Institutional Shares..................... (424,696) (1,256,883) (2,622,296) (2,313,063) --
Service Shares........................... (130,451) (219,277) (1,024,266) (1,431,162) --
Series A Investor Shares................. (7,335) (5,117) (10,005) (531) (34,065)
Series B Investor Shares................. -- -- -- -- (95,632)
----------- ----------- ------------ ------------ -----------------
Total distribution from net
investment income.................. (562,482) (1,481,277) (3,656,567) (3,744,756) (129,697)
----------- ----------- ------------ ------------ -----------------
Net realized gains
Institutional Shares..................... -- -- -- (166,177) --
Service Shares........................... -- -- -- (34,163) --
Series A Investor Shares................. -- -- -- -- --
Series B Investor Shares................. -- -- -- -- --
----------- ----------- ------------ ------------ -----------------
Total distributions from net realized
gains.............................. -- -- -- (200,340) --
----------- ----------- ------------ ------------ -----------------
Total distributions to
shareholders....................... (562,482) (1,481,277) (3,656,567) (3,945,096) (129,697)
----------- ----------- ------------ ------------ -----------------
Capital share transactions................... (8,048,051) 19,189,531 28,058,273 56,832,649 7,242,258
----------- ----------- ------------ ------------ -----------------
Total increase (decrease) in net
assets............................. (8,118,277) 17,567,417 29,705,011 50,943,068 7,390,317
Net assets:
Beginning of period........................ 24,126,380 6,558,963 107,747,028 56,803,960 --
----------- ----------- ------------ ------------ -----------------
End of period.............................. $16,008,103 $24,126,380 $137,452,039 $107,747,028 $ 7,390,317
=========== =========== ============= ============= =================
</TABLE>
- -------------
(1) Commencement of operations.
See accompanying notes to financial statements.
28
<PAGE> 73
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MANAGED INCOME PORTFOLIO
-------------------------------------
INSTITUTIONAL CLASS
-------------------------------------
FOR THE
SIX MONTHS
ENDED YEAR YEAR
3/31/95 ENDED ENDED
(UNAUDITED) 9/30/94 9/30/93
----------- -------- --------
<S> <C> <C> <C>
Net asset value at beginning of period................................................. $ 9.79 $ 11.17 $ 10.74
----------- -------- --------
Income from investment operations
Net investment income............................................................... 0.33 0.64 0.67
Net gain (loss) on investments (both realized and unrealized)....................... 0.18 (1.21) 0.56
----------- -------- --------
Total from investment operations................................................ 0.51 (0.57) 1.23
----------- -------- --------
Less distributions
Distributions from net investment income............................................ (0.34) (0.64) (0.67)
Distribution in excess of net investment income..................................... -- (0.02) --
Distributions from net realized capital gains....................................... -- (0.14) (0.13)
Distributions in excess of net realized gains....................................... -- (0.01) --
----------- -------- --------
Total distributions............................................................. (0.34) (0.81) (0.80)
----------- -------- --------
Net asset value at end of period....................................................... $ 9.96 $ 9.79 $ 11.17
=========== ======= ========
Total return........................................................................... 5.30% (5.27)% 12.13%
Ratios/Supplemental data
Net assets at end of period (in thousands).......................................... $ 408,387 $395,060 $341,791
Ratios of expenses to average net assets
After advisory/administration fee waivers......................................... 0.55%(2) 0.55% 0.74%
Before advisory/administration fee waivers........................................ 0.75%(2) 0.77% 0.78%
Ratios of net investment income to average net assets
After advisory/administration fee waivers......................................... 6.67%(2) 6.11% 6.25%
Before advisory/administration fee waivers........................................ 6.47%(2) 5.89% 6.21%
Portfolio turnover rate................................................................ 18% 61% 72%
<CAPTION>
MANAGED INCOME PORTFOLIO
-------------------------------------
INSTITUTIONAL CLASS
-------------------------------------
FOR THE
PERIOD
YEAR YEAR 11/1/89(1)
ENDED ENDED THROUGH
9/30/92 9/30/91 9/30/90
-------- ------- --------
<S> <C<C> <C> <C>
Net asset value at beginning of period................................................. $ 10.26 $ 9.70 $ 10.00
-------- ------- --------
Income from investment operations
Net investment income............................................................... 0.69 0.74 0.66
Net gain (loss) on investments (both realized and unrealized)....................... 0.48 0.63 (0.29)
-------- ------- --------
Total from investment operations................................................ 1.17 1.37 0.37
-------- ------- --------
Less distributions
Distributions from net investment income............................................ (0.69) (0.73) (0.66)
Distribution in excess of net investment income..................................... -- (0.08) (0.01)
Distributions from net realized capital gains....................................... -- -- --
Distributions in excess of net realized gains....................................... -- -- --
-------- ------- --------
Total distributions............................................................. (0.69) (0.81) (0.67)
-------- ------- --------
Net asset value at end of period....................................................... $ 10.74 $10.26 $ 9.70
======== ======= =========
Total return........................................................................... 11.80% 14.74% 3.80%
Ratios/Supplemental data
Net assets at end of period (in thousands).......................................... $314,075 $52,802 $38,328
Ratios of expenses to average net assets
After advisory/administration fee waivers......................................... 0.80% 0.80% 0.80%(2)
Before advisory/administration fee waivers........................................ 0.80% 0.84% 0.82%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers......................................... 6.28% 7.36% 7.31%(2)
Before advisory/administration fee waivers........................................ 6.28% 7.32% 7.29%(2)
Portfolio turnover rate................................................................ 56% 38% 18%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
29
<PAGE> 74
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MANAGED INCOME PORTFOLIO
-------------------------------------------------------
SERIES A
INVESTOR
SERVICE CLASS CLASS
------------------------------------ -----------
FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR 7/29/93(1) ENDED
3/31/95 ENDED THROUGH 3/31/95
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED)
----------- ------- -------- -----------
<S> <C> <C> <C> <C>
Net asset value at beginning of period............................ $ 9.79 $11.17 $ 10.96 $ 9.79
----------- ------- -------- -----------
Income from investment operations
Net investment income.......................................... 0.32 0.59 0.11 0.30
Net gain (loss) on investments (both realized and
unrealized).................................................. 0.17 (1.18) 0.21 0.19
----------- ------- -------- -----------
Total from investment operations........................... 0.49 (0.59) 0.32 0.49
----------- ------- -------- -----------
Less distributions
Distributions from net investment income....................... (0.32) (0.62) (0.11) (0.32)
Distribution in excess of net investment income................ -- (0.02) -- --
Distributions from net realized capital gains.................. -- (0.14) -- --
Distributions in excess of net realized gains.................. -- (0.01) -- --
----------- ------- -------- -----------
Total distributions........................................ (0.32) (0.79) (0.11) (0.32)
----------- ------- -------- -----------
Net asset value at end of period.................................. $ 9.96 $ 9.79 $ 11.17 $ 9.96
=========== ====== ======= ===========
Total return...................................................... 5.17% (5.49)% 2.93%(3) 5.08%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)..................... $83,626 $67,655 $15,322 $10,771
Ratios of expenses to average net assets
After advisory/administration fee waivers.................... 0.80%(2) 0.80% 0.80%(2) 1.00%(2)
Before advisory/administration fee waivers................... 1.00%(2) 1.02% 0.84%(2) 1.20%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.................... 6.43%(2) 5.95% 5.83%(2) 6.22%(2)
Before advisory/administration fee waivers................... 6.23%(2) 5.73% 5.79%(2) 6.02%(2)
Portfolio turnover rate........................................... 18% 61% 72% 18%
<CAPTION>
MANAGED INCOME PORTFOLIO
---------------------------------------
SERIES A INVESTOR CLASS
---------------------------------------
FOR THE
PERIOD
YEAR YEAR 2/05/92(1)
ENDED ENDED THROUGH
9/30/94 9/30/93 9/30/92
------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period............................ $11.18 $10.74 $10.40
------- ------- --------
Income from investment operations
Net investment income.......................................... 0.57 0.66 0.46
Net gain (loss) on investments (both realized and
unrealized).................................................. (1.19) 0.57 0.34
------- ------- --------
Total from investment operations........................... (0.62) 1.23 0.80
------- ------- --------
Less distributions
Distributions from net investment income....................... (0.60) (0.66) (0.46)
Distribution in excess of net investment income................ (0.02) -- --
Distributions from net realized capital gains.................. (0.14) (0.13) --
Distributions in excess of net realized gains.................. (0.01) -- --
------- ------- --------
Total distributions........................................ (0.77) (0.79) (0.46)
------- ------- --------
Net asset value at end of period.................................. $ 9.79 $11.18 $10.74
======= ======== ========
Total return...................................................... (5.76)%(3) 12.13%(3) 7.86%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)..................... $10,921 $7,252 $1,417
Ratios of expenses to average net assets
After advisory/administration fee waivers.................... 1.00% 0.84% 0.80%(2)
Before advisory/administration fee waivers................... 1.22% 0.88% 0.80%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.................... 5.66% 6.09% 6.28%(2)
Before advisory/administration fee waivers................... 5.44% 6.05% 6.28%(2)
Portfolio turnover rate........................................... 61% 72% 56%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
30
<PAGE> 75
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
TAX-FREE INCOME PORTFOLIO
------------------------------------
INSTITUTIONAL CLASS
------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 1/21/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period........................................ $ 10.04 $11.31 $10.61
----------- ------- --------
Income from investment operations
Net investment income...................................................... 1.48 0.53 0.42
Net gain (loss) on investments (both realized and unrealized).............. (0.84) (0.93) 0.70
----------- ------- --------
Total from investment operations....................................... 0.64 (0.40) 1.12
----------- ------- --------
Less distributions
Distributions from net investment income................................... (0.27) (0.53) (0.42)
Distributions from net realized capital gains.............................. (0.02) (0.34) --
----------- ------- --------
Total distributions.................................................... (0.29) (0.87) (0.42)
----------- ------- --------
Net asset value at end of period.............................................. $ 10.39 $10.04 $11.31
=========== ======= ========
Total return.................................................................. 6.53% (3.77)% 10.72%
Ratios/Supplemental data
Net assets at end of period (in thousands)................................. $ 12 $ 132 $ 675
Ratios of expenses to average net assets
After advisory/administration fee waivers................................ 0.50%(2) 0.50% 0.50%(2)
Before advisory/administration fee waivers............................... 1.50%(2) 1.73% 1.28%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers................................ 5.42%(2) 4.97% 5.14%(2)
Before advisory/administration fee waivers............................... 4.42%(2) 3.74% 4.36%(2)
Portfolio turnover rate....................................................... 19% 40% 71%
<CAPTION>
TAX-FREE INCOME PORTFOLIO
------------------------------------
SERVICE CLASS
------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 7/29/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- --------
<S> <C<C> <C> <C>
Net asset value at beginning of period........................................ $ 10.04 $11.31 $10.97
----------- ------- --------
Income from investment operations
Net investment income...................................................... 0.25 0.51 0.09
Net gain (loss) on investments (both realized and unrealized).............. 0.37 (0.93) 0.34
----------- ------- --------
Total from investment operations....................................... 0.62 (0.42) 0.43
----------- ------- --------
Less distributions
Distributions from net investment income................................... (0.25) (0.51) (0.09)
Distributions from net realized capital gains.............................. (0.02) (0.34) --
----------- ------- --------
Total distributions.................................................... (0.27) (0.85) (0.09)
----------- ------- --------
Net asset value at end of period.............................................. $ 10.39 $10.04 $11.31
=========== ======= ========
Total return.................................................................. 6.40% (4.02)% 3.92%
Ratios/Supplemental data
Net assets at end of period (in thousands)................................. $ 3,090 $2,109 $ 634
Ratios of expenses to average net assets
After advisory/administration fee waivers................................ 0.75%(2) 0.75% 0.71%(2)
Before advisory/administration fee waivers............................... 1.75%(2) 1.98% 1.49%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers................................ 5.13%(2) 4.75% 4.99%(2)
Before advisory/administration fee waivers............................... 4.13%(2) 3.52% 4.21%(2)
Portfolio turnover rate....................................................... 19% 40% 71%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
31
<PAGE> 76
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
TAX-FREE INCOME PORTFOLIO
-----------------------------------------------
SERIES A INVESTOR CLASS
-----------------------------------------------
FOR THE
SIX MONTHS
ENDED YEAR YEAR YEAR
3/31/95 ENDED ENDED ENDED
(UNAUDITED) 9/30/94 9/30/93 9/30/92
----------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value at beginning of period.................................... $ 10.04 $11.31 $10.60 $10.33
----------- ------- ------- -------
Income from investment operations
Net investment income.................................................. 0.24 0.48 0.55 0.58
Net gain (loss) on investments (both realized and unrealized).......... 0.37 (0.93) 0.83 0.49
----------- ------- ------- -------
Total from investment operations................................... 0.61 (0.45) 1.38 1.07
----------- ------- ------- -------
Less distributions
Distributions from net investment income............................... (0.24) (0.48) (0.55) (0.59)
Distributions from net realized capital gains.......................... (0.02) (0.34) (0.12) (0.21)
----------- ------- ------- -------
Total distributions................................................ (0.26) (0.82) (0.67) (0.80)
----------- ------- ------- -------
Net asset value at end of period.......................................... $ 10.39 $10.04 $11.31 $10.60
=========== ======= ======= ======
Total return.............................................................. 6.29%(3) (4.19)%(3) 13.48%(3) 10.67%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)............................. $ 6,880 $6,972 $7,831 $7,349
Ratios of expenses to average net assets
After advisory/administration fee waivers............................ 0.95%(2) 0.95% 0.57% 0.53%
Before advisory/administration fee waivers........................... 1.95%(2) 2.18% 1.36% 1.67%
Ratios of net investment income to average net assets
After advisory/administration fee waivers............................ 4.94%(2) 4.53% 5.06% 5.56%
Before advisory/administration fee waivers........................... 3.93%(2) 3.30% 4.27% 4.42%
Portfolio turnover rate................................................... 19% 40% 71% 38%
<CAPTION>
TAX-FREE INCOME PORTFOLIO
----------------------------
SERIES A INVESTOR CLASS
----------------------------
FOR THE
PERIOD
YEAR 5/14/90(1)
ENDED THROUGH
9/30/91 9/30/90
------- --------
<S> <C> <C>
Net asset value at beginning of period........................................ $ 9.91 $10.00
------- --------
Income from investment operations
Net investment income...................................................... 0.64 0.25
Net gain (loss) on investments (both realized and unrealized).............. 0.46 (0.11)
------- --------
Total from investment operations....................................... 1.10 0.14
------- --------
Less distributions
Distributions from net investment income................................... (0.66) (0.23)
Distributions from net realized capital gains.............................. (0.02) --
------- --------
Total distributions.................................................... (0.68) (0.23)
------- --------
Net asset value at end of period.............................................. $10.33 $ 9.91
======= ========
Total return.................................................................. 11.40%(3) 1.40%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)................................. $3,510 $4,044
Ratios of expenses to average net assets
After advisory/administration fee waivers................................ 1.00% 1.00%(2)
Before advisory/administration fee waivers............................... 1.89% 1.70%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers................................ 6.23% 6.56%(2)
Before advisory/administration fee waivers............................... 5.34% 5.86%(2)
Portfolio turnover rate....................................................... 95% 18%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
32
<PAGE> 77
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT PORTFOLIO
----------------------------------
INSTITUTIONAL CLASS
----------------------------------
FOR THE
SIX MONTHS
ENDED YEAR
3/31/95 ENDED
(UNAUDITED) 9/30/94
----------- --------
<S> <C> <C>
Net asset value at beginning of period................................................. $ 9.64 $ 10.60
----------- --------
Income from investment operations
Net investment income............................................................... 0.28 0.55
Net gain (loss) on investments (both realized and unrealized)....................... 0.12 (0.86)
----------- --------
Total from investment operations................................................ 0.40 (0.31)
----------- --------
Less distributions
Distributions from net investment income............................................ (0.29) (0.55)
Distributions from net realized capital gains....................................... -- (0.10)
----------- --------
Total distributions............................................................. (0.29) (0.65)
----------- --------
Net asset value at end of period....................................................... $ 9.75 $ 9.64
=========== =========
Total return........................................................................... 4.22% (3.08)%
Ratios/Supplemental data
Net assets at end of period (in thousands).......................................... $ 126,356 $128,974
Ratios of expenses to average net assets
After advisory/administration fee waivers......................................... 0.40%(2) 0.40%
Before advisory/administration fee waivers........................................ 0.77%(2) 0.80%
Ratios of net investment income to average net assets
After advisory/administration fee waivers......................................... 5.98%(2) 5.48%
Before advisory/administration fee waivers........................................ 5.61%(2) 5.08%
Portfolio turnover rate................................................................ 12% 9%
<CAPTION>
INTERMEDIATE GOVERNMENT PORTFOLIO
----------------------------------
INSTITUTIONAL CLASS
----------------------------------
FOR THE
PERIOD
YEAR 4/20/92(1)
ENDED THROUGH
9/30/93 9/30/92
-------- --------
<S> <C> <C>
Net asset value at beginning of period................................................... $ 10.46 $ 10.00
-------- --------
Income from investment operations
Net investment income................................................................. 0.54 0.24
Net gain (loss) on investments (both realized and unrealized)......................... 0.16 0.46
-------- --------
Total from investment operations.................................................. 0.70 0.70
-------- --------
Less distributions
Distributions from net investment income.............................................. (0.54) (0.24)
Distributions from net realized capital gains......................................... (0.02) --
-------- --------
Total distributions............................................................... (0.56) (0.24)
-------- --------
Net asset value at end of period......................................................... $ 10.60 $ 10.46
======== ========
Total return............................................................................. 6.88% 7.14%
Ratios/Supplemental data
Net assets at end of period (in thousands)............................................ $137,065 $105,620
Ratios of expenses to average net assets
After advisory/administration fee waivers........................................... 0.73% 0.80%(2)
Before advisory/administration fee waivers.......................................... 0.81% 0.80%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers........................................... 5.23% 5.28%(2)
Before advisory/administration fee waivers.......................................... 5.15% 5.28%(2)
Portfolio turnover rate.................................................................. 80% 38%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
33
<PAGE> 78
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT PORTFOLIO
-------------------------------------------------------
SERIES A
INVESTOR
SERVICE CLASS CLASS
------------------------------------ -----------
FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR 7/29/93(1) ENDED
3/31/95 ENDED THROUGH 3/31/95
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED)
----------- ------- -------- -----------
<S> <C> <C> <C> <C>
Net asset value at beginning of period............................ $ 9.64 $10.60 $ 10.45 $ 9.64
----------- ------- -------- -----------
Income from investment operations
Net investment income.......................................... 0.28 0.53 0.09 0.27
Net gain (loss) on investments (both realized and
unrealized).................................................. 0.11 (0.86) 0.15 0.12
----------- ------- -------- -----------
Total from investment operations........................... 0.39 (0.33) 0.24 0.39
----------- ------- -------- -----------
Less distributions
Distributions from net investment income....................... (0.28) (0.53) (0.09) (0.28)
Distributions from net realized capital gains.................. -- (0.10) -- --
----------- ------- -------- -----------
Total distributions........................................ (0.28) (0.63) (0.09) (0.28)
----------- ------- -------- -----------
Net asset value at end of period.................................. $ 9.75 $ 9.64 $ 10.60 $ 9.75
=========== ======= ======== ===========
Total return...................................................... 4.10% (3.31)% 2.30% 4.10%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)..................... $49,954 $60,812 $15,035 $ 9,134
Ratios of expenses to average net assets
After advisory/administration fee waivers.................... 0.65%(2) 0.65% 0.67%(2) 0.65%(2)
Before advisory/administration fee waivers................... 1.02%(2) 1.05% 0.75%(2) 1.02%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.................... 5.73%(2) 5.30% 5.14%(2) 5.73%(2)
Before advisory/administration fee waivers................... 5.36%(2) 4.90% 5.06%(2) 5.35%(2)
Portfolio turnover rate........................................... 12% 9% 80% 12%
<CAPTION>
INTERMEDIATE GOVERNMENT PORTFOLIO
---------------------------------
SERIES A INVESTOR CLASS
---------------------------------
FOR THE
PERIOD
YEAR YEAR 5/11/92(1)
ENDED ENDED THROUGH
9/30/94 9/30/93 9/30/92
------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period............................ $10.60 $10.46 $10.05
------- ------- --------
Income from investment operations
Net investment income.......................................... 0.53 0.54 0.24
Net gain (loss) on investments (both realized and
unrealized).................................................. (0.87) 0.16 0.41
------- ------- --------
Total from investment operations........................... (0.34) 0.70 0.65
------- ------- --------
Less distributions
Distributions from net investment income....................... (0.52) (0.54) (0.24)
Distributions from net realized capital gains.................. (0.10) (0.02) --
------- ------- --------
Total distributions........................................ (0.62) (0.56) (0.24)
------- ------- --------
Net asset value at end of period.................................. $ 9.64 $10.60 $10.46
======= ======= ========
Total return...................................................... (3.36)%(3) 6.84%(3) 6.64%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)..................... $8,508 $7,666 $1,484
Ratios of expenses to average net assets
After advisory/administration fee waivers.................... 0.65% 0.76% 0.80%(2)
Before advisory/administration fee waivers................... 1.05% 0.84% 0.80%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.................... 5.24% 5.19% 5.28%(2)
Before advisory/administration fee waivers................... 4.84% 5.11% 5.28%(2)
Portfolio turnover rate........................................... 9% 80% 38%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
34
<PAGE> 79
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
OHIO TAX-FREE INCOME PORTFOLIO
------------------------------------
INSTITUTIONAL CLASS
------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 12/1/92(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period........................................ $ 9.60 $10.53 $10.00
----------- ------- --------
Income from investment operations
Net investment income...................................................... 0.27 0.53 0.36
Net gain (loss) on investments (both realized and unrealized).............. 0.24 (0.91) 0.53
----------- ------- --------
Total from investment operations....................................... 0.51 (0.38) 0.89
----------- ------- --------
Less distributions
Distributions from net investment income................................... (0.27) (0.53) (0.36)
Distributions from net realized capital gains.............................. -- (0.02) --
----------- ------- --------
Total distributions.................................................... (0.27) (0.55) (0.36)
----------- ------- --------
Net asset value at end of period.............................................. $ 9.84 $ 9.60 $10.53
=========== ======= ========
Total return.................................................................. 5.50% (3.75)% 9.10%
Ratios/Supplemental data
Net assets at end of period (in thousands)................................. $ 83 $ 127 $1,676
Ratios of expenses to average net assets
After advisory/administration fee waivers................................ 0.10%(2) 0.10% 0.08%(2)
Before advisory/administration fee waivers............................... 0.80%(2) 1.49% 2.59%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers................................ 5.82%(2) 5.16% 4.99%(2)
Before advisory/administration fee waivers............................... 5.12%(2) 3.77% 2.48%(2)
Portfolio turnover rate....................................................... 26% 61% 36%
<CAPTION>
OHIO TAX-FREE INCOME PORTFOLIO
------------------------------------
SERVICE CLASS
------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 7/29/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period........................................ $ 9.60 $10.53 $10.24
----------- ------- --------
Income from investment operations
Net investment income...................................................... 0.26 0.49 0.09
Net gain (loss) on investments (both realized and unrealized).............. 0.24 (0.91) 0.29
----------- ------- --------
Total from investment operations....................................... 0.50 (0.42) 0.38
----------- ------- --------
Less distributions
Distributions from net investment income................................... (0.26) (0.49) (0.09)
Distributions from net realized capital gains.............................. -- (0.02) --
----------- ------- --------
Total distributions.................................................... (0.26) (0.51) (0.09)
----------- ------- --------
Net asset value at end of period.............................................. $ 9.84 $ 9.60 $10.53
=========== ======= ========
Total return.................................................................. 5.37% (4.00)% 3.68%
Ratios/Supplemental data
Net assets at end of period (in thousands)................................. $ 5,035 $4,428 $ 907
Ratios of expenses to average net assets
After advisory/administration fee waivers................................ 0.35%(2) 0.35% 0.32%(2)
Before advisory/administration fee waivers............................... 1.05%(2) 1.74% 2.83%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers................................ 5.58%(2) 5.06% 4.71%(2)
Before advisory/administration fee waivers............................... 4.88%(2) 3.67% 2.20%(2)
Portfolio turnover rate....................................................... 26% 61% 36%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
35
<PAGE> 80
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
OHIO TAX-FREE INCOME
PORTFOLIO
-----------------------
SERIES A
INVESTOR CLASS
-----------------------
FOR THE
SIX MONTHS
ENDED YEAR
3/31/95 ENDED
(UNAUDITED) 9/30/94
----------- -------
<S> <C> <C>
Net asset value at beginning of period............................................................. $ 9.60 $10.53
----------- -------
Income from investment operations
Net investment income........................................................................... 0.26 0.53
Net gain (loss) on investments (both realized and unrealized)................................... 0.24 (0.91)
----------- -------
Total from investment operations............................................................ 0.50 (0.38)
----------- -------
Less distributions
Distributions from net investment income........................................................ (0.26) (0.53)
Distributions from net realized capital gains................................................... -- (0.02)
----------- -------
Total distributions......................................................................... (0.26) (0.55)
----------- -------
Net asset value at end of period................................................................... $ 9.84 $ 9.60
=========== =======
Total return....................................................................................... 5.40%(3) (3.75)%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)...................................................... $ 3,378 $3,825
Ratios of expenses to average net assets
After advisory/administration fee waivers..................................................... 0.30%(2) 0.10%
Before advisory/administration fee waivers.................................................... 1.00%(2) 1.49%
Ratios of net investment income to average net assets
After advisory/administration fee waivers..................................................... 5.66%(2) 5.18%
Before advisory/administration fee waivers.................................................... 4.96%(2) 3.79%
Portfolio turnover rate............................................................................ 26% 61%
<CAPTION>
OHIO TAX-FREE INCOME PORTFOLIO
--------------------------------
SERIES A SERIES B
INVESTOR INVESTOR
CLASS CLASS
--------- --------------
FOR THE
FOR THE PERIOD
PERIOD 10/13/94(1)
12/1/92(1) THROUGH
THROUGH 3/31/95
9/30/93 (UNAUDITED)
-------- --------------
<S> <C> <C>
Net asset value at beginning of period............................................................. $10.00 $ 9.58
-------- ------
Income from investment operations
Net investment income........................................................................... 0.36 0.20
Net gain (loss) on investments (both realized and unrealized)................................... 0.53 0.26
-------- ------
Total from investment operations............................................................ 0.89 0.46
-------- ------
Less distributions
Distributions from net investment income........................................................ (0.36) (0.20)
Distributions from net realized capital gains................................................... -- --
-------- ------
Total distributions......................................................................... (0.36) (0.20)
-------- ------
Net asset value at end of period................................................................... $10.53 $ 9.84
======== ======
Total return....................................................................................... 9.10%(3) 4.71%(4)
Ratios/Supplemental data
Net assets at end of period (in thousands)...................................................... $2,386 $ 62
Ratios of expenses to average net assets
After advisory/administration fee waivers..................................................... 0.07%(2) 1.09%(2)
Before advisory/administration fee waivers.................................................... 2.58%(2) 1.79%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers..................................................... 4.90%(2) 4.71%(2)
Before advisory/administration fee waivers.................................................... 2.39%(2) 4.01%(2)
Portfolio turnover rate............................................................................ 36% 26%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
(4) Contingent deferred sales load not reflected in total return.
See accompanying notes to financial statements.
36
<PAGE> 81
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
PENNSYLVANIA TAX-FREE INCOME
PORTFOLIO
------------------------------------
INSTITUTIONAL CLASS
------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 12/1/92(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period......................................... $ 9.82 $10.70 $10.00
----------- ------- --------
Income from investment operations
Net investment income....................................................... 0.27 0.53 0.39
Net gain (loss) on investments (both realized and unrealized)............... 0.22 (0.85) 0.73
----------- ------- --------
Total from investment operations........................................ 0.49 (0.32) 1.12
----------- ------- --------
Less distributions
Distributions from net investment income.................................... (0.27) (0.53) (0.39)
Distributions from net realized capital gains............................... -- (0.03) (0.03)
----------- ------- --------
Total distributions..................................................... (0.27) (0.56) (0.42)
----------- ------- --------
Net asset value at end of period............................................... $ 10.04 $ 9.82 $10.70
=========== ======= ========
Total return................................................................... 4.99% (2.96)% 11.69%
Ratios/Supplemental data
Net assets at end of period (in thousands).................................. $ 1,157 $ 639 $ 256
Ratios of expenses to average net assets
After advisory/administration fee waivers................................. 0.50%(2) 0.39% 0.09%(2)
Before advisory/administration fee waivers................................ 0.85%(2) 0.99% 0.97%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers................................. 5.54%(2) 5.27% 5.19%(2)
Before advisory/administration fee waivers................................ 5.19%(2) 4.67% 4.31%(2)
Portfolio turnover rate........................................................ 30% 30% 40%
<CAPTION>
PENNSYLVANIA TAX-FREE INCOME
PORTFOLIO
------------------------------------
SERVICE CLASS
------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 7/29/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period......................................... $ 9.82 $10.70 $10.43
----------- ------- --------
Income from investment operations
Net investment income....................................................... 0.25 0.51 0.09
Net gain (loss) on investments (both realized and unrealized)............... 0.22 (0.85) 0.28
----------- ------- --------
Total from investment operations........................................ 0.47 (0.34) 0.37
----------- ------- --------
Less distributions
Distributions from net investment income.................................... (0.25) (0.51) (0.09)
Distributions from net realized capital gains............................... -- (0.03) (0.01)
----------- ------- --------
Total distributions..................................................... (0.25) (0.54) (0.10)
----------- ------- --------
Net asset value at end of period............................................... $ 10.04 $ 9.82 $10.70
=========== ======= ========
Total return................................................................... 4.86% (3.20)% 3.54%
Ratios/Supplemental data
Net assets at end of period (in thousands).................................. $12,915 $11,518 $3,894
Ratios of expenses to average net assets
After advisory/administration fee waivers................................. 0.75%(2) 0.55% 0.34%(2)
Before advisory/administration fee waivers................................ 1.10%(2) 1.15% 1.22%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers................................. 5.29%(2) 4.97% 4.90%(2)
Before advisory/administration fee waivers................................ 4.94%(2) 4.37% 4.02%(2)
Portfolio turnover rate........................................................ 30% 30% 40%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
37
<PAGE> 82
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
PENNSYLVANIA TAX-FREE
INCOME PORTFOLIO
-----------------------
SERIES A
INVESTOR CLASS
-----------------------
FOR THE
SIX MONTHS
ENDED YEAR
3/31/95 ENDED
(UNAUDITED) 9/30/94
----------- -------
<S> <C> <C>
Net asset value at beginning of period.............................................................. $ 9.82 $10.70
----------- -------
Income from investment operations
Net investment income............................................................................ 0.25 0.52
Net gain (loss) on investments (both realized and unrealized).................................... 0.22 (0.85)
----------- -------
Total from investment operations............................................................. 0.47 (0.33)
----------- -------
Less distributions
Distributions from net investment income......................................................... (0.25) (0.52)
Distributions from net realized capital gains.................................................... -- (0.03)
----------- -------
Total distributions.......................................................................... (0.25) (0.55)
----------- -------
Net asset value at end of period.................................................................... $ 10.04 $ 9.82
=========== =======
Total return........................................................................................ 4.76%(3) (3.06)%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)....................................................... $44,458 $46,563
Ratios of expenses to average net assets
After advisory/administration fee waivers...................................................... 0.95%(2) 0.41%
Before advisory/administration fee waivers..................................................... 1.30%(2) 1.01%
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................................................... 5.11%(2) 5.06%
Before advisory/administration fee waivers..................................................... 4.76%(2) 4.46%
Portfolio turnover rate............................................................................. 30% 30%
<CAPTION>
PENNSYLVANIA TAX-FREE
INCOME PORTFOLIO
-------------------------------
SERIES A
INVESTOR SERIES B
CLASS INVESTOR CLASS
---------- --------------
FOR THE
FOR THE PERIOD
PERIOD 10/03/94(1)
12/1/92(1) THROUGH
THROUGH 3/31/95
9/30/93 (UNAUDITED)
-------- --------------
<S> <C> <C>
Net asset value at beginning of period.............................................................. $ 10.00 $ 9.82
-------- ------
Income from investment operations
Net investment income............................................................................ 0.42 0.21
Net gain (loss) on investments (both realized and unrealized).................................... 0.73 0.22
-------- ------
Total from investment operations............................................................. 1.15 0.43
-------- ------
Less distributions
Distributions from net investment income......................................................... (0.42) (0.21)
Distributions from net realized capital gains.................................................... (0.03) --
-------- ------
Total distributions.......................................................................... (0.45) (0.21)
-------- ------
Net asset value at end of period.................................................................... $ 10.70 $10.04
======== ======
Total return........................................................................................ 11.69%(3) 4.49%(4)
Ratios/Supplemental data
Net assets at end of period (in thousands)....................................................... $35,934 $2,341
Ratios of expenses to average net assets
After advisory/administration fee waivers...................................................... 0.07%(2) 1.49%(2)
Before advisory/administration fee waivers..................................................... 0.95%(2) 1.84%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................................................... 5.19%(2) 4.43%(2)
Before advisory/administration fee waivers..................................................... 4.31%(2) 4.08%(2)
Portfolio turnover rate............................................................................. 40% 30%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
(4) Contingent deferred sales load not reflected in total return.
See accompanying notes to financial statements.
38
<PAGE> 83
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SHORT-TERM BOND PORTFOLIO
-------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
------------------------------------ -----------------------
FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR 9/1/93(1) ENDED YEAR
3/31/95 ENDED THROUGH 3/31/95 ENDED
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED) 9/30/94
----------- ------- -------- ----------- -------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period................. $ 9.58 $10.00 $10.00 $ 9.58 $10.00
----------- ------- -------- ----------- -------
Income from investment operations
Net investment income............................... 0.26 0.42 0.02 0.25 0.39
Net gain (loss) on investments (both realized and
unrealized)....................................... (0.02) (0.42) -- (0.02) (0.42)
----------- ------- -------- ----------- -------
Total from investment operations................ 0.24 -- 0.02 0.23 (0.03)
----------- ------- -------- ----------- -------
Less distributions
Distributions from net investment income............ (0.26) (0.42) (0.02) (0.25) (0.39)
Distributions from net realized capital gains....... -- -- -- -- --
----------- ------- -------- ----------- -------
Total distributions............................. (0.26) (0.42) (0.02) (0.25) (0.39)
----------- ------- -------- ----------- -------
Net asset value at end of period....................... $ 9.56 $ 9.58 $10.00 $ 9.56 $ 9.58
=========== ======= ======== =========== =======
Total return........................................... 2.53% (0.02)% 0.23% 2.40% (0.26)%
Ratios/Supplemental data
Net assets at end of period (in thousands).......... $ 9,972 $17,619 $3,748 $ 5,777 $6,230
Ratios of expenses to average net assets
After advisory/administration fee waivers......... 0.40%(2) 0.40% 0.40%(2) 0.65%(2) 0.65%
Before advisory/administration fee waivers........ 1.00%(2) 0.95% 1.42%(2) 1.25%(2) 1.20%
Ratios of net investment income to average net
assets
After advisory/administration fee waivers......... 5.39%(2) 4.27% 2.92%(2) 5.18%(2) 4.07%
Before advisory/administration fee waivers........ 4.79%(2) 3.72% 1.90%(2) 4.57%(2) 3.52%
Portfolio turnover rate................................ 40% 113% 0% 40% 113%
<CAPTION>
SHORT-TERM BOND PORTFOLIO
----------------------------------------
SERVICE SERIES A
CLASS INVESTOR CLASS
--------- ------------------------
FOR THE FOR THE FOR THE
PERIOD SIX MONTHS PERIOD
9/1/93(1) ENDED 11/17/93(1)
THROUGH 3/31/95 THROUGH
9/30/94 (UNAUDITED) 9/30/94
-------- ----------- --------
<S> <C> <C> <C>
Net asset value at beginning of period................. $10.00 $ 9.58 $ 9.96
-------- ----------- --------
Income from investment operations
Net investment income............................... 0.02 0.25 0.34
Net gain (loss) on investments (both realized and
unrealized)....................................... -- (0.02) (0.38)
-------- ----------- --------
Total from investment operations................ 0.02 0.23 (0.04)
-------- ----------- --------
Less distributions
Distributions from net investment income............ (0.02) (0.25) (0.34)
Distributions from net realized capital gains....... -- -- --
-------- ----------- --------
Total distributions............................. (0.02) (0.25) (0.34)
-------- ----------- --------
Net asset value at end of period....................... $10.00 $ 9.56 $ 9.58
======== =========== ========
Total return........................................... 0.21% 2.40%(3) (0.43)%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands).......... $2,811 $ 259 $ 277
Ratios of expenses to average net assets
After advisory/administration fee waivers......... 0.65%(2) 0.65%(2) 0.65%(2)
Before advisory/administration fee waivers........ 1.67% 1.25%(2) 1.20%(2)
Ratios of net investment income to average net
assets
After advisory/administration fee waivers......... 2.57%(2) 5.19%(2) 4.19%(2)
Before advisory/administration fee waivers........ 1.55%(2) 4.58%(2) 3.64%(2)
Portfolio turnover rate................................ 0% 40% 113%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
39
<PAGE> 84
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERMEDIATE-TERM BOND PORTFOLIO
-------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
------------------------------------ -----------------------
FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR 9/17/93(1) ENDED YEAR
3/31/95 ENDED THROUGH 3/31/95 ENDED
(UNAUDITED) 9/30/94 9/30/93 (UNAUDITED) 9/30/94
----------- ------- -------- ----------- -------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period................. $ 9.05 $10.01 $ 10.00 $ 9.05 $10.01
----------- ------- -------- ----------- -------
Income from investment operations
Net investment income............................... 0.28 0.54 0.02 0.27 0.54
Net gain (loss) on investments (both realized and
unrealized)....................................... 0.08 (0.88) (0.01) 0.07 (0.91)
----------- ------- -------- ----------- -------
Total from investment operations................ 0.36 (0.34) 0.01 0.34 (0.37)
----------- ------- -------- ----------- -------
Less distributions
Distributions from net investment income............ (0.28) (0.56) -- (0.26) (0.53)
Distributions from net realized capital gains....... -- (0.06) -- -- (0.06)
----------- ------- -------- ----------- -------
Total distributions............................. (0.28) (0.62) -- (0.26) (0.59)
----------- ------- -------- ----------- -------
Net asset value at end of period....................... $ 9.13 $ 9.05 $ 10.01 $ 9.13 $ 9.05
=========== ======= ======== =========== =======
Total return........................................... 4.02% (3.52)% 0.10% 3.89% (3.80)%
Ratios/Supplemental data
Net assets at end of period (in thousands).......... $ 101,379 $71,896 $56,713 $35,630 $35,764
Ratios of expenses to average net assets
After advisory/administration fee waivers......... 0.45%(2) 0.45% 0.45%(2) 0.70%(2) 0.70%
Before advisory/administration fee waivers........ 0.80%(2) 0.88% 0.84%(2) 1.05%(2) 1.13%
Ratios of net investment income to average net
assets
After advisory/administration fee waivers......... 6.17%(2) 5.54% 4.72%(2) 5.90%(2) 5.33%
Before advisory/administration fee waivers........ 5.82%(2) 5.11% 4.33%(2) 5.56%(2) 4.90%
Portfolio turnover rate................................ 22% 92% 4% 22% 92%
<CAPTION>
INTERMEDIATE-TERM BOND PORTFOLIO
--------------------------------------------
SERIES A
SERVICE CLASS INVESTOR CLASS
-------------- ------------------------
FOR THE FOR THE FOR THE
PERIOD SIX MONTHS PERIOD
9/23/93(1) ENDED 5/20/94(1)
THROUGH 3/31/95 THROUGH
9/30/93 (UNAUDITED) 9/30/94
-------- ----------- --------
<S> <C> <C> <C>
Net asset value at beginning of period................. $ 9.99 $ 9.05 $ 9.23
-------- ----------- --------
Income from investment operations
Net investment income............................... -- 0.27 0.20
Net gain (loss) on investments (both realized and
unrealized)....................................... 0.02 0.08 (0.17)
-------- ----------- --------
Total from investment operations................ 0.02 0.35 0.03
-------- ----------- --------
Less distributions
Distributions from net investment income............ -- (0.27) (0.21)
Distributions from net realized capital gains....... -- -- --
-------- ----------- --------
Total distributions............................. -- (0.27) (0.21)
-------- ----------- --------
Net asset value at end of period....................... $10.01 $ 9.13 $ 9.05
======== =========== ========
Total return........................................... 0.20% 3.90%(3) 0.31%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands).......... $ 91 $ 443 $ 87
Ratios of expenses to average net assets
After advisory/administration fee waivers......... 0.70%(2) 0.70%(2) 0.85%(2)
Before advisory/administration fee waivers........ 1.09%(2) 1.05%(2) 1.28%(2)
Ratios of net investment income to average net
assets
After advisory/administration fee waivers......... 4.35%(2) 5.91%(2) 5.35%(2)
Before advisory/administration fee waivers........ 3.96%(2) 5.57%(2) 4.92%(2)
Portfolio turnover rate................................ 4% 22% 92%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
40
<PAGE> 85
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GOVERNMENT INCOME PORTFOLIO
---------------------------------
SERIES A SERIES B
INVESTOR INVESTOR
CLASS CLASS
----------- -----------
FOR THE FOR THE
PERIOD PERIOD
10/04/94(1) 10/04/94(1)
THROUGH THROUGH
3/31/95 3/31/95
(UNAUDITED) (UNAUDITED)
----------- -----------
<S> <C> <C>
Net asset value at beginning of period................................................... $ 10.00 $ 10.00
----------- -----------
Income from investment operations
Net investment income................................................................. 0.34 0.30
Net gain (loss) on investments (both realized and unrealized)......................... 0.15 0.15
----------- -----------
Total from investment operations.................................................. 0.49 0.45
----------- -----------
Distributions from net investment income.............................................. (0.34) (0.30)
Distributions from net realized capital gains......................................... -- --
----------- -----------
Total distributions............................................................... (0.34) (0.30)
----------- -----------
Net asset value at end of period......................................................... $ 10.15 $ 10.15
=========== ===========
Total return............................................................................. 4.97%(3) 4.64%(4)
Ratios/Supplemental data
Net assets at end of period (in thousands)............................................ $ 5,737 $ 1,653
Ratios of expenses to average net assets
After advisory/administration fee waivers........................................... 0.24%(2) 0.89%(2)
Before advisory/administration fee waivers.......................................... 2.06%(2) 2.71%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers........................................... 7.17%(2) 6.48%(2)
Before advisory/administration fee waivers.......................................... 5.35%(2) 4.66%(2)
Portfolio turnover rate.................................................................. 120% 120%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
(4) Contingent deferred sales load not reflected in total return.
See accompanying notes to financial statements.
41
<PAGE> 86
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
(UNAUDITED)
The PNC Fund (the "Fund") was organized on December 22, 1988 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as an open-end management investment company. The Fund
consists of twenty-five separate Portfolios: Money Market Portfolio, Municipal
Money Market Portfolio, Government Money Market Portfolio, Ohio Municipal Money
Market Portfolio, Pennsylvania Municipal Money Market Portfolio, North Carolina
Municipal Money Market Portfolio, Virginia Municipal Money Market Portfolio,
Value Equity Portfolio, Growth Equity Portfolio, Small Cap Growth Equity
Portfolio, Core Equity Portfolio, Index Equity Portfolio, Small Cap Value Equity
Portfolio, International Equity Portfolio, International Emerging Markets
Portfolio, Balanced Portfolio, Managed Income Portfolio, Tax-Free Income
Portfolio, Intermediate Government Portfolio, Ohio Tax-Free Income Portfolio,
Pennsylvania Tax-Free Income Portfolio, Short-Term Bond Portfolio,
Intermediate-Term Bond Portfolio, International Fixed Income Portfolio and
Government Income Portfolio. As of March 31,1995, the International Fixed Income
Portfolio had not commenced operations. This report relates solely to Managed
Income Portfolio, Tax-Free Income Portfolio, Intermediate Government Portfolio,
Ohio Tax-Free Income Portfolio, Pennsylvania Tax-Free Income Portfolio,
Short-Term Bond Portfolio, Intermediate-Term Bond Portfolio and Government
Income Portfolio (the "Portfolios").
Each Portfolio has four classes of shares, one class being referred to as
the Service shares, one class being referred to as the Institutional shares, one
class being referred to as the Series A Investor shares and one class being
referred to as the Series B Investor shares. No Series B Investor shares had
been issued for Managed Income Portfolio, Tax-Free Income Portfolio,
Intermediate Government Portfolio, Short-Term Bond Portfolio, and
Intermediate-Term Bond Portfolio through March 31, 1995. Series A Investor,
Series B Investor, Institutional and Service shares in a Portfolio represent
equal pro rata interests in such Portfolio, except that they bear different
expenses which reflect the difference in the range of services provided to them.
Series A Investor shares bear the expense of the Series A Distribution and
Service Plan at an annual rate not to exceed .55% of the average daily net asset
value of each Portfolio's outstanding Series A Investor shares. Series B
Investor shares bear the expense of the Series B Distribution Plan at an annual
rate not to exceed .75% of the average daily net asset value of each Portfolio's
outstanding Series B Investor shares. Series B Investor shares also bear the
expense of the Series B Service Plan at an annual rate not to exceed .25% of the
average daily net asset value of each Portfolio's outstanding Series B Investor
shares. Under the Fund's Service Plan, Service shares bear the expense of fees
at an annual rate not to exceed .15% of the average daily net asset value of
each Portfolio's outstanding Service shares. Service shares also bear the
expense of a service fee at an annual rate not to exceed .15% of the average
daily net asset value of each Portfolio's outstanding Service shares for other
shareholder support activities provided by service organizations. Institutional
shares do not bear the expenses of the Series A Distribution and Service Plan,
the Service Plan, the Series B Distribution Plan or the Series B Service Plan.
The Service, Series A Investor and Series B Investor classes are currently
bearing such respective expenses at aggregate annual rates of .30% of the
average daily net asset value of Service shares, .25% to .45% of the average
daily net asset value of Series A Investor shares and .95% to 1.00% of the
average daily net asset value of Series B Investor shares.
42
<PAGE> 87
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Security Valuation -- Portfolio securities for which market quotations are
readily available are valued at market value, which is currently determined
using the last reported sales price. If no sales are reported, as in the case of
some securities traded over-the-counter, portfolio securities are valued at the
mean between the last reported bid and asked prices. Corporate bonds and
tax-exempt bonds are valued on the basis of quotations provided by a pricing
service which uses information with respect to transactions on bonds, quotations
from bond dealers, market transactions in comparable securities and various
relationships between securities in determining value. Short-term obligations
with maturities of 60 days or less are valued at amortized cost which
approximates market value. Discounts and premiums on debt securities are
amortized for book and tax purposes using the effective yield-to-maturity method
over the term of the instrument with the exception of Managed Income Portfolio
which does not amortize discount or premium for tax purposes.
Dividends to Shareholders -- Dividends from net investment income are
declared and paid monthly for each of the Managed Income, Tax-Free Income,
Intermediate Government and Intermediate-Term Bond Portfolios. The net
investment income of each of the Pennsylvania Tax-Free Income, Ohio Tax-Free
Income, Short-Term Bond and Government Income Portfolios is declared daily as a
dividend to investors who are shareholders of such Portfolio at, and whose
payment for share purchases are available to the particular Portfolio in Federal
funds by, the close of business on the day of declaration. Net realized capital
gains, if any, will be distributed at least annually.
Federal Taxes -- No provision is made for Federal taxes as it is the Fund's
intention to have each Portfolio continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from Federal income and excise taxes.
Security Transactions and Investment Income -- Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
Federal income tax purposes. Interest income is recorded on the accrual basis.
Certain expenses, principally fees relating to the Service Plan, the Series A
Distribution and Service Plan, the Series B Distribution Plan and the Series B
Service Plan, are class specific expenses. Expenses not directly attributable to
a specific Portfolio or class are allocated among all of the Portfolios or
classes of the Fund based on their relative net assets.
Repurchase Agreements -- Money market instruments may be purchased from
banks and non-bank dealers subject to the seller's agreement to repurchase them
at an agreed upon date and price. Collateral for repurchase agreements may have
longer maturities than the maximum permissible remaining maturity of portfolio
investments. The seller will be required on a daily basis to maintain the value
of the securities subject to the agreement at not less than the repurchase
price. The agreements are conditioned upon the collateral being deposited under
the Federal Reserve book-entry system or held in a separate account by the
Fund's custodian or an authorized securities depository.
Organization Costs -- Costs incurred by each Portfolio in connection with
its organization, registration and initial public offering have been deferred
and are being amortized using the straight-line method
43
<PAGE> 88
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
over a five-year period beginning on the date on which each Portfolio commenced
its investment activities.
Implementation of AICPA Statement of Position 93-2: -- As of October 1,
1993, the Fund implemented AICPA Statement of Position 93-2 -- Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distributions by Investment Companies. Adoption of this
standard results in the reclassification to paid-in capital of permanent
differences between tax and financial reporting of net investment income and net
realized gain (loss). The change has had no material effect on paid-in capital
or other components of the net assets of any of the Portfolios at October 1,
1993. Distributions to shareholders and net asset values were not affected by
this change.
(B) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to an Investment Advisory Agreement, PNC Institutional Management
Corporation ("PIMC"), a wholly-owned subsidiary of PNC Asset Management Group,
Inc. ("PAMG"), which is in turn a wholly-owned subsidiary of PNC Bank, National
Association ("PNC Bank"), serves as adviser for each of the Fund's Portfolios.
BlackRock Financial Management, Inc. ("BlackRock"), a wholly-owned subsidiary of
PAMG, serves as sub-adviser for the Managed Income Portfolio, Intermediate
Government Portfolio, Ohio Tax-Free Income Portfolio, Pennsylvania Tax-Free
Income Portfolio, Short-Term Bond Portfolio, Intermediate-Term Bond Portfolio
and Government Income Portfolio. PNC Bank serves as sub-adviser for the Tax-Free
Income Portfolio. PNC Bank, PAMG, PIMC and BlackRock are indirect wholly-owned
subsidiary of PNC Bank Corp.
For its advisory services, PIMC is entitled to receive fees at the
following annual rates, computed daily and payable monthly, based on each
Portfolio's average daily net assets: .50% of the first $1 billion, .45% of the
next $1 billion, .425% of the next $1 billion and .40% of net assets in excess
of $3 billion.
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for any Portfolio. For the six months ended March 31, 1995,
advisory fees and waivers for each Portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET ADVISORY
ADVISORY FEE WAIVER FEE
------------ -------- ------------
<S> <C> <C> <C>
Managed Income Portfolio.......................... $ 1,197,064 $359,119 $837,945
Tax-Free Income Portfolio......................... 23,479 23,479 --
Intermediate Government Portfolio................. 473,522 284,113 189,409
Ohio Tax-Free Income Portfolio.................... 20,289 20,289 --
Pennsylvania Tax-Free Income Portfolio............ 141,528 70,854 70,674
Short-Term Bond Portfolio......................... 52,691 45,484 7,207
Intermediate-Term Bond Portfolio.................. 299,568 148,809 150,759
Government Income Portfolio....................... 9,654 9,654 --
</TABLE>
PIMC pays PNC Bank and BlackRock fees for their sub-advisory services.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank Corp.,
and Provident Distributors, Inc. ("PDI") act as co-administrators for the Fund.
The combined administration fee is computed daily and payable monthly, based on
a percentage of the average daily net assets of each
44
<PAGE> 89
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
Portfolio, at the following annual rates: .20% of the first $500 million, .18%
of the next $500 million, .16% of the next $1 billion and .15% of net assets in
excess of $2 billion.
PFPC and PDI may, at their discretion, voluntarily waive all or any portion
of their administration fees for any Portfolio. For the six months ended March
31, 1995, administration fees and waivers for each Portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION ADMINISTRATION
FEE WAIVER FEE
-------------- -------- --------------
<S> <C> <C> <C>
Managed Income Portfolio........................ $478,826 $121,966 $356,860
Tax-Free Income Portfolio....................... 9,391 9,391 --
Intermediate Government Portfolio............... 189,409 70,226 119,183
Ohio Tax-Free Income Portfolio.................. 8,116 8,116 --
Pennsylvania Tax-Free Income Portfolio.......... 56,611 28,341 28,270
Short-Term Bond Portfolio....................... 21,076 18,193 2,883
Intermediate-Term Bond Portfolio................ 119,827 59,523 60,304
Government Income Portfolio..................... 3,862 3,862 --
</TABLE>
In addition, PNC Bank serves as custodian for each of the Fund's
Portfolios. PFPC serves as transfer and dividend disbursing agent.
PIMC, PFPC and PDI have also voluntarily agreed to reimburse expenses in
the amount of $14,219 with respect to the Tax-Free Income Portfolio, $20,129
with respect to the Ohio Tax-Free Income Portfolio, $2,426 with respect to the
Short-Term Bond Portfolio and $21,652 with respect to the Government Income
Portfolio for the six months ended March 31, 1995.
PIMC, PFPC and PDI have also agreed to reimburse each Portfolio for the
amount, if any, by which the total operating and management expenses of such
Portfolio for any fiscal year exceed the most restrictive state blue sky expense
limitation in effect from time to time, to the extent required by such
limitation. No such reimbursements were necessary for the six months ended March
31, 1995.
(C) PURCHASES AND SALES OF SECURITIES
For the six months ended March 31, 1995, purchases and sales of securities,
other than short-term and government securities, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Managed Income Portfolio...................................... $42,779,033 $49,497,092
Tax-Free Income Portfolio..................................... 1,964,936 1,772,971
Intermediate Government Portfolio............................. 10,000,000 18,256,434
Ohio Tax-Free Income Portfolio................................ 2,160,627 2,252,616
Pennsylvania Tax-Free Income Portfolio........................ 15,574,387 14,586,191
Short-Term Bond Portfolio..................................... 5,369,311 6,209,510
Intermediate-Term Bond Portfolio.............................. 33,362,908 17,416,427
Government Income Portfolio................................... 2,998,125 --
</TABLE>
45
<PAGE> 90
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
For the six months ended March 31, 1995, purchases and sales of government
securities were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Managed Income Portfolio................................... $44,931,953 $33,327,980
Intermediate Government Portfolio.......................... 12,152,500 16,696,906
Short-Term Bond Portfolio.................................. 2,006,719 6,032,492
Intermediate-Term Bond Portfolio........................... 19,113,750 6,755,219
Government Income Portfolio................................ 7,728,369 3,925,170
</TABLE>
(D) CAPITAL SHARES
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
MANAGED INCOME PORTFOLIO
------------------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
----------------------------- ---------------------------
SHARES VALUE SHARES VALUE
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class.............. 40,394,956 $ 401,653,573 12,186,561 $124,468,452
Service Class.................... 8,234,192 81,494,027 8,352,936 87,090,065
Series A Investor Class.......... 142,386 1,395,579 628,230 6,631,737
Shares issued in acquisition:
Institutional Class.............. -- -- 3,649,044 36,599,918
Service Class.................... -- -- -- --
Series A Investor Class.......... -- -- -- --
Shares issued in reinvestment of
dividends:
Institutional Class.............. 1,257,732 12,238,111 2,074,139 21,617,113
Service Class.................... 172,567 1,680,033 205,275 2,116,342
Series A Investor Class.......... 32,211 313,239 59,113 615,438
Shares redeemed:
Institutional Class.............. (41,019,095) (407,709,303) (8,140,174) (85,121,512)
Service Class.................... (6,924,615) (68,704,691) (3,017,544) (31,450,922)
Series A Investor Class.......... (209,193) (2,039,723) (220,470) (2,266,512)
------------ ------------- ----------- ------------
Net increase.......................... 2,081,141 $ 20,320,845 15,777,110 $160,300,119
============= ============== ============ =============
</TABLE>
46
<PAGE> 91
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
<TABLE>
<CAPTION>
TAX-FREE INCOME PORTFOLIO
-----------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
------------------------ ------------------------
SHARES VALUE SHARES VALUE
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class................... -- $ -- 30,016 $ 320,369
Service Class......................... 191,527 1,942,030 299,743 3,207,629
Series A Investor Class............... 33,097 333,928 102,083 1,081,748
Shares issued in reinvestment of dividends:
Institutional Class................... 2 23 3,035 33,037
Service Class......................... 2,139 21,027 4,080 43,401
Series A Investor Class............... 14,363 141,687 43,152 463,438
Shares redeemed:
Institutional Class................... (12,063) (122,546) (79,482) (827,433)
Service Class......................... (106,375) (1,075,859) (149,752) (1,559,420)
Series A Investor Class............... (79,759) (789,832) (142,876) (1,498,048)
-------- ----------- -------- -----------
Net increase............................... 42,931 $ 450,458 109,999 $ 1,264,721
========= ============ ========= ============
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT PORTFOLIO
-------------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
--------------------------- -------------------------
SHARES VALUE SHARES VALUE
----------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class.................. 13,240,821 $ 128,733,215 5,241,062 $ 53,297,377
Service Class........................ 5,691,727 55,233,299 7,063,429 70,892,359
Series A Investor Class.............. 154,907 1,487,931 319,769 3,266,107
Shares issued in reinvestment of
dividends:
Institutional Class.................. 316,360 3,023,513 515,901 5,204,029
Service Class........................ 127,624 1,218,598 162,581 1,624,604
Series A Investor Class.............. 25,512 243,749 48,076 484,534
Shares redeemed:
Institutional Class.................. (13,977,621) (135,580,177) (5,308,429) (53,437,379)
Service Class........................ (7,004,560) (67,932,032) (2,334,076) (23,159,926)
Series A Investor Class.............. (126,383) (1,209,988) (208,394) (2,123,022)
----------- ------------- ---------- ------------
Net increase (decrease)................... (1,551,613) $ (14,781,892) 5,499,919 $ 56,048,683
============ ============== ========== =============
</TABLE>
47
<PAGE> 92
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
<TABLE>
<CAPTION>
OHIO TAX-FREE INCOME PORTFOLIO
-----------------------------------------------------
FOR THE SIX MONTHS
ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
---------------------- -------------------------
SHARES VALUE SHARES VALUE
------- --------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class..................... -- $ -- 175,112 $ 1,807,527
Service Class........................... 93,086 869,281 422,283 4,189,332
Series A Investor Class................. 27,256 252,907 191,083 1,965,179
Series B Investor Class................. 6,331 60,009 -- --
Shares issued in reinvestment of dividends:
Institutional Class..................... 113 1,063 5,038 51,291
Service Class........................... 1,987 18,626 3,851 38,380
Series A Investor Class................. 7,910 74,368 17,230 172,308
Series B Investor Class................. 22 219 -- --
Shares redeemed:
Institutional Class..................... (4,891) (44,724) (326,154) (3,233,385)
Service Class........................... (44,655) (415,512) (51,056) (506,812)
Series A Investor Class................. (90,208) (830,586) (36,633) (375,525)
Series B Investor Class................. -- -- -- --
-------- --------- -------- -----------
Net increase (decrease)...................... (3,049) $ (14,349) 400,754 $ 4,108,295
======== ========== ========= ============
</TABLE>
<TABLE>
<CAPTION>
PENNSYLVANIA TAX-FREE INCOME PORTFOLIO
-----------------------------------------------------
FOR THE SIX MONTHS
ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
----------------------- --------------------------
SHARES VALUE SHARES VALUE
-------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class..................... 50,221 $ 499,500 64,868 $ 647,801
Service Class........................... 292,124 2,830,955 1,233,208 12,861,509
Series A Investor Class................. 251,527 2,426,449 2,269,114 23,724,954
Series B Investor Class................. 232,263 2,264,933 -- --
Shares issued in reinvestment of dividends:
Institutional Class..................... -- -- 325 3,463
Service Class........................... 6,576 62,462 15,516 158,276
Series A Investor Class................. 94,405 942,908 212,735 2,147,477
Series B Investor Class................. 1,460 14,256 -- --
Shares redeemed:
Institutional Class..................... -- -- (24,130) (253,996)
Service Class........................... (184,783) (1,760,059) (440,397) (4,431,356)
Series A Investor Class................. (660,699) (6,300,128) (1,097,528) (11,299,229)
Series B Investor Class................. (574) (5,670) -- --
-------- ----------- ---------- ------------
Net increase................................. 82,520 $ 975,606 2,233,711 $ 23,558,899
========= ============ ========== =============
</TABLE>
48
<PAGE> 93
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
<TABLE>
<CAPTION>
SHORT-TERM BOND PORTFOLIO
--------------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
-------------------------- --------------------------
SHARES VALUE SHARES VALUE
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class................ 795,364 $ 7,563,337 3,720,716 $ 37,120,901
Service Class...................... 221,683 2,110,317 755,330 7,473,735
Series A Investor Class............ 3,114 29,697 29,976 294,033
Shares issued in reinvestment of
dividends:
Institutional Class................ 8,955 85,129 21,968 214,759
Service Class...................... 8,077 76,763 14,450 141,147
Series A Investor Class............ 761 7,244 532 5,175
Shares redeemed:
Institutional Class................ (1,600,803) (15,239,852) (2,277,873) (22,096,796)
Service Class...................... (275,950) (2,627,296) (400,419) (3,947,645)
Series A Investor Class............ (5,585) (53,390) (1,632) (15,778)
---------- ------------ ---------- ------------
Net increase (decrease)................... (844,384) $ (8,048,051) 1,863,048 $ 19,189,531
========== ============= ========== =============
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE-TERM BOND PORTFOLIO
----------------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
---------------------------- --------------------------
SHARES VALUE SHARES VALUE
----------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class............... 15,177,386 $ 137,702,920 2,440,016 $ 22,611,998
Service Class..................... 3,217,701 29,314,020 2,720,032 25,860,499
Series A Investor Class........... 43,232 388,603 9,574 87,478
Shares issued in acquisition:
Institutional Class............... -- -- 3,673,356 33,684,821
Service Class..................... -- -- 3,055,695 29,793,024
Series A Investor Class........... -- -- -- --
Shares issued in reinvestment of
dividends:
Institutional Class............... 241,540 2,172,370 84,197 768,975
Service Class..................... 80,054 718,965 101,940 943,961
Series A Investor Class........... 1,113 10,005 58 531
Shares redeemed:
Institutional Class............... (12,265,967) (111,692,110) (3,917,113) (38,816,847)
Service Class..................... (3,349,940) (30,507,444) (1,933,866) (18,101,776)
Series A Investor Class........... (5,479) (49,056) (2) (15)
----------- ------------- ---------- ------------
Net increase............................. 3,139,640 $ 28,058,273 6,233,887 $ 56,832,649
============ ============== ========== =============
</TABLE>
49
<PAGE> 94
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT INCOME
PORTFOLIO
--------------------------
FOR THE PERIOD
OCTOBER 3, 1994(1)
THROUGH
MARCH 31, 1995
(UNAUDITED)
--------------------------
SHARES VALUE
------- ----------
<S> <C> <C>
Shares sold:
Series A Investor Class................. 571,024 $5,678,249
Series B Investor Class................. 171,632 1,711,063
Shares issued in reinvestment of dividends:
Series A Investor Class................. 3,362 33,498
Series B Investor Class................. 2,462 24,048
Shares redeemed:
Series A Investor Class................. (9,329) (93,059)
Series B Investor Class................. (11,270) (111,541)
------- ----------
Net increase................................. 727,881 $7,242,258
======== ==========
</TABLE>
- -------------
(1) Commencement of operations.
(E) AT MARCH 31, 1995, NET ASSETS CONSISTED OF:
<TABLE>
<CAPTION>
OHIO
MANAGED TAX-FREE INTERMEDIATE TAX-FREE
INCOME INCOME GOVERNMENT INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Capital paid-in........................... $516,166,457 $9,906,360 $194,540,456 $8,937,517
Undistributed net investment income....... -- 668 -- --
Distributions in excess of net investment
income.................................. (1,827,120) -- (27,038) --
Accumulated net realized gain (loss) on
investment transactions................. (8,125,670) 17,340 (3,499,097) (268,635)
Net unrealized appreciation (depreciation)
on investments.......................... (3,428,902) 57,624 (5,570,817) (110,698)
------------ ---------- ------------ ----------
$502,784,765 $9,981,992 $185,443,504 $8,558,184
============= ========== ============= ==========
</TABLE>
50
<PAGE> 95
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PENNSYLVANIA
TAX-FREE SHORT-TERM INTERMEDIATE- GOVERNMENT
INCOME BOND TERM BOND INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ------------ ----------
<S> <C> <C> <C> <C>
Capital paid-in................ $63,390,467 $ 17,703,380 $140,472,405 $7,242,258
Undistributed net investment
income....................... -- -- 6,566 --
Distributions in excess of net
investment income............ (3,258) -- -- --
Accumulated net realized loss
on investment transactions... (1,364,384) (1,337,797) (2,053,048) (14,621)
Net unrealized appreciation
(depreciation) on
investments.................. (1,151,726) (357,480) (973,884) 162,680
----------- ------------ ------------ ----------
$60,871,099 $ 16,008,103 $137,452,039 $7,390,317
============ ============= ============= ==========
</TABLE>
(F) CAPITAL LOSS CARRYOVERS
At September 30, 1994, capital loss carryovers were available to offset
possible future realized capital gains as follows: $3,617,069 in the Managed
Income Portfolio which expire in the year 2002, $521,807 in the Intermediate
Government Portfolio which expire in the year 2002, and $1,064,515 in the
Short-Term Bond Portfolio which expire in the year 2002. At September 30, 1994,
the deferred post-October losses were as follows: $371,881 for the Managed
Income Portfolio, $100,370 for the Ohio Tax-Free Income Portfolio, $285,131 for
the Pennsylvania Tax-Free Income Portfolio, and $1,155,530 for the
Intermediate-Term Bond Portfolio.
(G) ACQUISITION OF PNC COLLECTIVE FUNDS
On December 28, 1993, The PNC Fund acquired all the assets of the PNC
Financial Common Trust for Retirement Assets Fixed Income Portfolio from
participants of such fund. The acquisition was accomplished by a tax-free
exchange of assets with a value of $29,793,024 for 3,055,695 Service shares of
the Intermediate-Term Bond Portfolio at $9.75 per share. The Fixed Income
Portfolio's net assets on that date included $1,173,313 in unrealized
appreciation of securities.
On May 26, 1994, The PNC Fund acquired all the assets of the PNC Pension
Plan Assets Fixed Income Portfolio from participants of such fund. The
acquisition was accomplished by a tax-free exchange of assets with a value of
$22,388,535 for 2,444,163 Institutional shares of the Intermediate-Term Bond
Portfolio at $9.16 per share and a value of $24,915,125 for 2,484,060
Institutional shares of the Managed Income Portfolio at $10.03 per share.
On June 21, 1994, The PNC Fund acquired all the assets of the PNC Incentive
Savings Plan Assets Fixed Income Portfolio from participants of such fund. The
acquisition was accomplished by a tax-free exchange of assets with a value of
$11,296,286 for 1,229,193 Institutional shares of the Intermediate-Term Bond
Portfolio at $9.19 per share and a value of $11,684,793 for 1,164,984
Institutional shares of the Managed Income Portfolio at $10.03 per share.
51
<PAGE> 96
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
(H) SPECIAL MEETING OF SHAREHOLDERS
A Special Meeting of Shareholders (the "Meeting") of the Managed Income,
Intermediate Government, Ohio Tax-Free Income, Pennsylvania Tax-Free Income,
Short-Term Bond, Intermediate-Term Bond and Government Income Portfolios was
held on March 29, 1995. At the Meeting, the shareholders of each Portfolio
listed above voted to approve sub-advisory agreements between PIMC and BlackRock
with respect to the Portfolio. The result of the voting with respect to the
approval of BlackRock as sub-adviser for each of the above-referenced Portfolios
was as follows:
<TABLE>
<CAPTION>
PORTFOLIO FOR AGAINST ABSTAIN
- ----------------------------------------------------------- ----------- ------- --------
<S> <C> <C> <C>
Managed Income............................................. 49,082,482 13,104 46,316
Intermediate Government.................................... 18,184,904 31,212 17,073
Ohio Tax-Free Income....................................... 786,976 2,705 8,647
Pennsylvania Tax-Free Income............................... 4,705,437 29,387 109,687
Short-Term Bond............................................ 1,398,018 0 1,614
Intermediate-Term Bond..................................... 14,915,739 18,931 3,767
Government Income.......................................... 519,789 3,892 308
</TABLE>
52
<PAGE> 97
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 98
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 99
====================================================
Investment Adviser
PNC Institutional Management
Corporation
Wilmington, Delaware 19809
Sub-Adviser -- Managed Income
Portfolio, Intermediate Government
Portfolio, Ohio Tax-Free Income Portfolio,
Pennsylvania Tax-Free Income Portfolio,
Short-Term Bond Portfolio,
Intermediate-Term Bond Portfolio and
Government Income Portfolio
BlackRock Financial Management, Inc.
New York, New York 10154
Sub-Adviser -- Tax-Free
Income Portfolio and Custodian
PNC Bank, National Association
Philadelphia, Pennsylvania 19101
Co-Administrator and Transfer Agent
PFPC Inc.
Wilmington, Delaware 19809
Co-Administrator and Distributor
Provident Distributors, Inc.
Radnor, Pennsylvania 19087
Counsel
Drinker Biddle & Reath
Philadelphia, Pennsylvania 19107
Independent Accountants
Coopers & Lybrand, L.L.P.
Philadelphia, Pennsylvania 19103
PNCI-T-01F
====================================================
====================================================
[PNC FUNDS LOGO]
THE PNC(R) FUND
MANAGED INCOME PORTFOLIO
TAX-FREE INCOME PORTFOLIO
INTERMEDIATE GOVERNMENT PORTFOLIO
OHIO TAX-FREE INCOME PORTFOLIO
PENNSYLVANIA TAX-FREE
INCOME PORTFOLIO
SHORT-TERM BOND PORTFOLIO
INTERMEDIATE-TERM BOND PORTFOLIO
GOVERNMENT INCOME PORTFOLIO
Semi-Annual Report to Shareholders
March 31, 1995
====================================================
<PAGE> 100
THE PNC(R) FUND
BELLEVUE PARK CORPORATE CENTER
400 BELLEVUE PARKWAY
WILMINGTON, DE 19809
April 27, 1995
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of The PNC
Fund covering the six months ended March 31, 1995. This report includes security
listings and performance results for the equity portfolios of The PNC Fund.
Each equity portfolio focuses on a specific equity investment style. This
array of portfolios enables shareholders to more precisely structure their
investments according to their overall financial goals. These portfolios are
managed with a sophisticated blend of discipline, experience and expertise. The
goal of the PNC equity portfolios is to provide you with consistency as well as
above-average results.
If you have any questions regarding The PNC Fund or the enclosed
information, please contact the Fund at 1-800-422-6538.
We appreciate your participation in The PNC Fund and we welcome
opportunities to better service your needs.
Sincerely,
/s/ G. WILLING PEPPER
-------------------------------
G. Willing Pepper
Chairman and President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, PNC BANK, NATIONAL ASSOCIATION OR ANY OTHER BANK AND SHARES ARE NOT
FEDERALLY INSURED BY, GUARANTEED BY, OBLIGATIONS OF OR OTHERWISE SUPPORTED BY
THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER GOVERNMENTAL AGENCY. INVESTMENTS IN SHARES OF THE
FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
<PAGE> 101
THE PNC FUND
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
Last year, the fixed income markets were hard hit by rising interest rates
and derivative-related losses. The first quarter of 1995 got off to an
inauspicious start with another increase in short-term interest rates, the
financial crisis in Mexico, and the decline in the dollar. One area that does
appear to be experiencing a trend change is the pace of business activity. In
the fourth quarter of last year, the economy grew by a revised 4.6%, pushing the
annual rate of growth to 4.0%, the strongest showing in ten years. Estimates for
the first quarter average around 3%, based on signs of lower consumer spending,
declining auto sales and a softer housing market. In recent congressional
testimony, Fed Chairman Greenspan indicated that the FOMC expects the economy to
expand at a 2-3% rate in 1995. Greenspan even used the word "ease" in his
February 1995 testimony, causing the markets to rally strongly, but temporarily,
on the belief that the year long rise in interest rates was about over.
The Fed also has reason to be pleased with the inflation numbers. The
fourth quarter GDP report revealed that prices advanced only 1.3%, versus 1.9%
in the previous quarter. For 1994 consumer prices were up 2.7%, exactly the same
as in 1993. The FOMC is estimating that consumer prices will average 3.0-3.5% in
1995.
Equity securities were clearly the asset of choice during the first quarter
of 1995. The S&P 500 produced a total return of approximately 9.7%. During the
quarter, the market was paced by transportation (S&P Transports up 15.2%) and
financial issues (S&P Financials up 12.7%). Small cap stocks fared less well, as
the Russel 2000 rose approximately 4.2% during the first quarter, after a
decline of 2.2% in the fourth quarter of last year.
The surge in stock prices has been fueled by a number of important factors:
- Continued strong earnings gains, as reduced costs, the weak dollar and
healthy demand have been the major contributors;
- Declining long-term interest rates and the belief that Federal Reserve
tightening has been successful in bringing about a soft landing;
- Steady flows into equity mutual funds and a net liquidation of equity
supply through mergers and acquisitions and corporate stock buybacks; and
- The weaker dollar and more rapid growth overseas have provided for faster
earnings growth in those companies which derive a more significant
portion of their operating income from foreign operations.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
APRIL 27, 1995
<PAGE> 102
THE PNC(R) FUND
VALUE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
---------- ------------
<S> <C> <C>
COMMON STOCKS -- 98.2%
AEROSPACE -- 4.8%
Boeing Co. 321,700 $ 17,331,588
United Technologies Corp. 187,050 12,929,831
------------
30,261,419
------------
AIR TRANSPORT -- 1.5%
British Airways PLC ADR 149,100 9,803,325
------------
APPAREL -- 1.2%
Fruit of the Loom, Inc. 285,800** 7,502,250
------------
AUTOMOTIVE -- 4.3%
Chrysler Corp. 216,100 9,049,188
Ford Motor Co. 374,900 10,122,300
General Motors Corp. 182,804 8,089,077
------------
27,260,565
------------
BANKS -- 9.7%
Bank of New York Co., Inc. 197,500 6,492,813
Comerica, Inc. 294,200 8,090,500
CoreStates Financial Corp. 348,426 11,149,632
First Chicago Corp. 242,800 12,170,350
Meridian Bancorp, Inc. 288,900 8,847,563
NationsBank Corp. 148,500 7,536,375
Republic New York Corp. 151,800 7,457,175
------------
61,744,408
------------
CHEMICALS -- 10.4%
Dow Chemical Co. 190,000 13,870,000
E.I. Du Pont de Nemours & Co. 177,825 10,758,413
IMC Global, Inc. 264,050 12,905,444
Lubrizol Corp. 459,200 16,186,800
Monsanto Co. 154,800 12,422,700
------------
66,143,357
------------
COMPUTER & OFFICE
EQUIPMENT -- 0.9%
Xerox Corp. 51,200 6,009,600
------------
COMPUTER SOFTWARE &
SERVICES -- 2.6%
Stratus Computer, Inc. 182,500** 5,703,125
Sun Microsystems, Inc. 304,200** 10,570,950
------------
16,274,075
------------
CONGLOMERATES -- 1.1%
ITT Corp. 66,000 6,773,250
------------
<CAPTION>
NUMBER
OF SHARES VALUE
---------- ------------
<S> <C> <C>
CONSUMER NON-DURABLES -- 0.8%
First Brands Corp. 133,559 $ 5,025,157
------------
DRUGS & HEALTH CARE -- 7.8%
American Home Products Corp. 181,800 12,953,250
Bristol Meyers Squibb Co. 175,700 11,069,100
Eli Lilly, & Co. 188,200 13,762,125
Merck & Co., Inc. 283,350 12,077,790
------------
49,862,265
------------
ENERGY & RAW MATERIALS -- 4.4%
Elf Aquitaine ADR 258,100 10,001,375
Royal Dutch Petroleum Co. 83,400 10,008,000
Ultramar PLC ADR 294,500 7,657,000
------------
27,666,375
------------
ENERGY & UTILITIES -- 6.2%
Entergy Corp. 200,000 4,175,000
Nipsco 100,000 3,112,500
Ohio Edison Co. 223,900 4,478,000
PECO Energy Co. 446,900 11,228,363
Southern Co. 316,300 6,444,613
Unicom Corp. 425,430 10,103,963
------------
39,542,439
------------
FINANCE -- 2.9%
AMBAC, Inc. 176,400 7,166,250
Dean Witter Discover & Co. 281,936 11,488,892
------------
18,655,142
------------
INSURANCE -- 8.5%
American General Corp. 211,600 6,824,100
American International Group,
Inc. 93,250 9,721,313
AON Corp. 220,300 8,040,950
CHUBB Corp. 97,500 7,702,500
General Reinsurance Corp. 50,600 6,679,200
MBIA, Inc. 117,500 7,387,813
Reliastar Financial Corp. 90,000 3,060,000
TIG Holdings, Inc. 194,100 4,367,250
------------
53,783,126
------------
MANUFACTURING -- 1.5%
AlliedSignal, Inc. 238,400 9,357,200
------------
MEDICAL INSTRUMENTS &
SUPPLIES -- 1.3%
Beckman Instruments, Inc. 279,000 8,265,375
------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 103
VALUE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
METALS & MINING -- 1.6%
Phelps Dodge Corp. 179,300 $ 10,197,688
------------
OIL DOMESTIC -- 5.6%
Atlantic Richfield Co. 104,800 12,052,000
Diamond Shamrock, Inc. 229,400 6,050,425
Phillips Petroleum Co. 186,900 6,845,213
Tenneco, Inc. 232,700 10,965,988
------------
35,913,626
------------
OIL INTERNATIONAL -- 4.6%
Chevron Corp. 135,300 6,494,400
Exxon Corp. 116,200 7,756,350
Mobil Corp. 92,500 8,567,813
Texaco, Inc. 96,600 6,423,900
------------
29,242,463
------------
PAPER & FOREST PRODUCTS -- 1.9%
Federal Paper Board Co., Inc. 157,600 4,491,600
International Paper Co. 100,000 7,512,500
------------
12,004,100
------------
PRODUCER GOODS -- 1.9%
General Electric Co. 221,900 12,010,338
------------
RAILROADS & SHIPPING -- 2.5%
Conrail Corp. 157,500 8,839,688
Norfolk Southern Corp. 106,100 7,095,438
------------
15,935,126
------------
RETAIL MERCHANDISING -- 3.7%
Fingerhut Companies, Inc. 395,400 4,695,370
K Mart Corp. 723,000 9,941,250
Sears, Roebuck & Co. 165,500 8,833,563
------------
23,470,183
------------
TELECOMMUNICATIONS -- 3.5%
NYNEX Corp. 286,800 11,364,450
U.S. West, Inc. 268,500 10,740,000
------------
22,104,450
------------
TIRES & RUBBER -- 1.7%
Goodyear Tire & Rubber Co. 298,000 10,951,500
------------
<CAPTION>
NUMBER
OF SHARES VALUE
---------- ------------
<S> <C> <C>
TOBACCO -- 1.3%
UST, Inc. 267,800 $ 8,502,650
------------
TOTAL COMMON STOCKS
(Cost $556,070,599) 624,261,452
------------
TEMPORARY INVESTMENTS -- 2.2%
Smith Barney Money Market Fund
(Cost $14,342,831) 14,342,831 14,342,831
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $570,413,430*) 100.4% 638,604,283
LIABILITIES IN EXCESS OF OTHER
ASSETS (0.4%) (2,716,389)
------ ------------
NET ASSETS (Applicable to
40,984,991 Institutional
shares, 10,371,904 Service
shares, and 1,035,874 Series
A Investor
shares outstanding) 100.0% $635,887,894
====== ============
NET ASSET VALUE AND REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE, AND SERIES A
INVESTOR SHARE
($635,887,894 / 52,392,769) $12.14
======
OFFERING PRICE PER INSTITUTIONAL
AND SERVICE SHARE $12.14
======
MAXIMUM OFFERING PRICE PER SERIES A
INVESTOR SHARE
($12.14 / .955) $12.71
======
</TABLE>
- -------------
* Also for Federal income tax purposes. The gross
unrealized appreciation (depreciation) on a tax basis is
as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 82,437,462
Gross unrealized depreciation (14,246,609)
------------
$ 68,190,853
=============
</TABLE>
** Non-income producing security.
See accompanying notes to financial statements.
4
<PAGE> 104
THE PNC(R) FUND
GROWTH EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- --------- ------------
<S> <C> <C>
AGENCY OBLIGATIONS -- 11.7%
FEDERAL HOME LOAN BANK DISCOUNT
NOTES
6.25% 04/03/95 $26,240 $ 26,230,889
------------
(Cost $26,230,889)
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES
---------
<S> <C> <C>
COMMON STOCKS -- 88.2%
ADVERTISING -- 2.2%
Interpublic Group of Cos.,
Inc. 73,900 2,762,013
Omnicom Group, Inc. 40,000 2,190,000
------------
4,952,013
------------
APPAREL -- 0.8%
Cintas Corp. 46,300 1,736,250
------------
AUTOMOTIVE -- 1.0%
Echlin, Inc. 60,000 2,310,000
------------
BANKS -- 1.7%
BankAmerica Corp. 45,500 2,195,375
Boatmen's Bancshares, Inc. 50,000 1,512,500
------------
3,707,875
------------
BEVERAGES -- 3.6%
Anheuser-Busch Cos., Inc. 51,000 2,989,875
Coca-Cola Co. 44,500 2,514,250
Pepsico, Inc. 65,300 2,546,700
------------
8,050,825
------------
BROADCASTING -- 1.3%
Capital Cities ABC, Inc. 24,300 2,144,475
Viacom, Inc. Class B 18,000** 805,500
------------
2,949,975
------------
CHEMICALS -- 3.5%
Air Products & Chemical, Inc. 39,000 2,032,875
Dow Chemical Co. 36,000 2,628,000
E. I. Du Pont de Nemours & Co. 34,000 2,057,000
PPG Industries, Inc. 30,000 1,132,500
------------
7,850,375
------------
COMPUTER & OFFICE EQUIPMENT -- 3.5%
Compaq Computer Corp. 46,000** 1,587,000
HBO & Co. 29,100 1,265,850
Intel Corp. 25,700 2,181,288
International Business
Machines Corp. 19,700 1,612,938
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMPUTER & OFFICE EQUIPMENT (CONTINUED)
Xerox Corp. 9,200 $ 1,079,850
------------
7,726,926
------------
COMPUTER SOFTWARE & SERVICES -- 5.2%
Automatic Data Processing,
Inc. 42,000 2,646,000
Cisco Systems, Inc. 60,500** 2,306,563
Computer Sciences Corp. 29,000** 1,431,875
First Data Corp. 27,700 1,436,938
Microsoft Corp. 34,000** 2,418,250
Oracle Systems Corp. 42,000** 1,312,500
------------
11,552,126
------------
CONSTRUCTION -- 0.2%
Foster Wheeler Corp. 15,000 508,125
------------
CONSUMER NON-DURABLES -- 4.3%
Colgate-Palmolive Co. 20,000 1,320,000
Dial Corp. 86,000 2,182,250
Lancaster Colony Corp. 43,333 1,538,322
Newell Co. 55,600 1,417,800
Procter & Gamble Co. 33,500 2,219,375
Rubbermaid, Inc. 30,000 990,000
------------
9,667,747
------------
ELECTRONICS -- 10.6%
AMP, Inc. 30,000 1,080,000
Atmel Corp. 21,200** 818,850
Emerson Electric Co. 45,000 2,992,500
General Electric Co. 84,000 4,546,500
General Instruments Corp. 74,000** 2,571,500
Hewlett Packard Co. 13,400 1,613,025
LSI Logic Corp. 36,000** 1,890,000
Micron Technology, Inc. 13,700 1,041,200
Molex, Inc. Class A 53,750 1,814,062
Motorola, Inc. 37,100 2,026,588
Texas Instruments, Inc. 12,500 1,106,250
Varian Associates, Inc. 53,200 2,241,050
------------
23,741,525
------------
FINANCE -- 3.0%
Dean Witter Discover & Co. 36,000 1,467,000
Federal Home Loan Mortgage
Corp. 10,000 605,000
Federal National Mortgage
Association 10,000 813,750
First Financial Management
Corp. 30,000 2,167,500
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 105
GROWTH EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
FINANCE (CONTINUED)
Reuters Holdings PLC ADR 36,000 $ 1,656,000
------------
6,709,250
------------
FOOD & AGRICULTURE -- 5.1%
Conagra, Inc. 46,000 1,523,750
CPC International, Inc. 54,000 2,922,750
Nabisco Holdings Corp. 36,000** 1,030,500
Philip Morris Cos., Inc. 34,500 2,251,125
Sara Lee Corp. 80,000 2,090,000
Tyson Foods, Inc. 60,500 1,459,562
------------
11,277,687
------------
INSURANCE -- 2.8%
American International Group,
Inc. 27,000 2,814,750
General Re Corp. 10,000 1,320,000
Humana, Inc. 80,000** 2,050,000
------------
6,184,750
------------
MACHINERY & HEAVY EQUIPMENT -- 0.7%
Clark Equipment Co. 18,700** 1,542,750
------------
MANUFACTURING -- 5.6%
Allied-Signal, Inc. 67,000 2,629,750
Illinois Tool Works, Inc. 68,000 3,323,500
Millipore Corp. 40,000 2,230,000
Minnesota Mining &
Manufacturing Co. 45,000 2,615,625
Parker-Hannifin Corp. 40,000 1,770,000
------------
12,568,875
------------
MEDICAL & MEDICAL SERVICES -- 4.5%
Columbia HCA Healthcare Corp. 50,000 2,150,000
Healthsouth Corp. 75,000** 3,046,875
Manor Care, Inc. 55,000 1,670,625
Pacificare Health Systems,
Inc. Class B 45,000** 3,251,250
------------
10,118,750
------------
MEDICAL INSTRUMENTS & SUPPLIES -- 0.3%
Forest Laboratories, Inc. 15,000** 714,375
------------
PAPER & FOREST PRODUCTS -- 1.0%
Scott Paper Co. 25,000 2,234,375
------------
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
PERSONAL SERVICES -- 0.9%
Service Corp. International 75,000 $ 2,100,000
------------
PHARMACEUTICAL PREPARATIONS -- 6.6%
Abbott Laboratories, Inc. 70,000 2,493,750
Amgen, Inc. 30,000** 2,021,250
Johnson & Johnson 42,000 2,499,000
Merck & Co., Inc. 50,000 2,131,250
Pfizer, Inc. 25,000 2,143,750
Teva Pharmaceutical Industries
LTD. ADR 70,000 2,108,750
Warner-Lambert Co. 17,000 1,330,250
------------
14,728,000
------------
PUBLISHING -- 2.5%
McGraw-Hill, Inc. 34,800 2,496,900
R. R. Donnelley & Sons Co. 40,000 1,375,000
Readers Digest Association,
Inc. 35,400 1,703,625
------------
5,575,525
------------
RESTAURANTS -- 0.9%
McDonalds Corp. 62,000 2,115,750
------------
RETAIL MERCHANDISING -- 6.0%
Albertson's, Inc. 60,000 1,935,000
Home Depot, Inc. 25,000 1,106,250
Kroger Co. 77,200** 2,036,150
Lowe's Cos., Inc. 31,000 1,069,500
Mattel, Inc. 64,062 1,577,526
Officemax, Inc. 93,400** 2,393,374
Petsmart, Inc. 29,000** 1,015,000
Staples, Inc. 60,000** 1,582,500
Wal-Mart Stores, Inc. 24,000 612,000
------------
13,327,300
------------
SOAPS & COSMETICS -- 1.3%
Gillette Co. 36,000 2,938,500
------------
TELECOMMUNICATIONS -- 2.0%
AT&T Corp. 32,000 1,656,000
DSC Communications Corp. 37,500** 1,221,093
Equifax, Inc. 50,000 1,687,500
------------
4,564,593
------------
TIRES & RUBBER -- 0.9%
Cooper Tire & Rubber Co. 70,000 1,986,250
------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 106
GROWTH EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TOBACCO -- 0.9%
UST, Inc. 60,000 $ 1,905,000
------------
TRAVEL & RECREATION -- 5.3%
Hospitality Franchise System,
Inc. 91,000** 2,912,000
La Quinta Inns, Inc. 90,000 2,441,250
Marriot International, Inc. 83,000 2,884,250
Mirage Resorts, Inc. 39,800** 1,114,400
Promus Cos., Inc. 14,000** 525,000
Walt Disney Co. 38,000 2,028,250
------------
11,905,150
------------
TOTAL COMMON STOCKS
(Cost $177,888,181) 197,250,642
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $204,119,070*) 99.9% 223,481,531
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 54,119
--------- ------------
NET ASSETS (Applicable to
15,220,512 Institutional
shares, 4,599,623 Service
shares and 655,763 Series A
Investor shares outstanding) 100.0% $223,535,650
======== =============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($166,209,725 / 15,220,512) $10.92
======
<CAPTION>
VALUE
------------
<S> <C> <C>
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SERVICE
SHARE
($50,177,330 / 4,599,623) $10.91
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SERIES A INVESTOR
SHARE ($7,148,595 / 655,763) $10.90
======
MAXIMUM OFFERING PRICE PER
SERIES A INVESTOR SHARE
($10.90 / .955) $11.41
======
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $20,367,871
Gross unrealized depreciation (1,005,410)
--------------
$19,362,461
=============
</TABLE>
** Non-income producing security.
See accompanying notes to financial statements.
7
<PAGE> 107
THE PNC(R) FUND
SMALL CAP GROWTH EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C>
AGENCY OBLIGATIONS -- 12.4%
FEDERAL HOME LOAN BANK DISCOUNT NOTES
6.25% 04/03/95 $16,350 $ 16,344,323
------------
(Cost $16,344,323)
<CAPTION>
NUMBER
OF SHARES
---------
<S> <C> <C>
COMMON STOCKS -- 88.3%
APPAREL -- 2.4%
Nautica Enterprises 30,600** 956,250
St. John Knits, Inc. 30,000 1,095,000
Tommy Hilfiger Corp. 50,000** 1,100,000
------------
3,151,250
------------
BUSINESS SERVICES -- 5.6%
ABR Information Services 19,200** 475,200
Accustaff, Inc. 27,600** 527,850
Brandon Systems Corp. 20,000 437,500
HCIA, Inc. 64,000** 1,568,000
Norrell Corp. 40,900 899,800
Paychex, Inc. 9,500 437,000
Quintiles Transnational Corp. 37,000** 1,341,250
Wackenhut Corrections Corp. 61,100** 1,733,713
------------
7,420,313
------------
COMPUTER & OFFICE EQUIPMENT -- 9.3%
Cognex Corp. 54,500** 1,566,875
DH Technology, Inc. 26,500** 550,438
HBO & Co. 26,000 1,131,000
Hyperion Software Corp. 29,000** 1,355,750
Microcom, Inc. 97,320** 1,103,974
National Computer Systems,
Inc. 33,800 566,150
Opti, Inc. 53,000** 854,625
Pairgain Technologies, Inc. 22,700** 541,963
Peak Technologies Group 40,000** 800,000
Proxima Corp. 31,500 815,063
Remedy Corporation 1,000** 35,875
Software Artistry, Inc. 30,000** 720,000
System Software Associates,
Inc. 23,000 575,000
TGV Software, Inc. 14,000** 315,000
Tivoli Systems, Inc. 35,100** 1,298,700
------------
12,230,413
------------
COMPUTER SOFTWARE & SERVICES -- 17.3%
Acxiom Corp. 70,000** 1,172,500
Alias Research, Inc. 40,000** 1,220,000
American Management Systems,
Inc. 61,900** 1,199,313
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMPUTER SOFTWARE & SERVICES
(CONTINUED)
Applied Voice Technology, Inc. 32,500** $ 662,188
Aspen Technology, Inc. 35,600** 703,100
Atria Software, Inc. 43,500** 2,066,250
Concentra Corporation 54,800** 753,500
Davidson & Associates, Inc. 12,000** 402,000
Electronics For Imaging Inc. 20,400** 1,091,400
Epic Design Technology, Inc. 12,200** 326,350
Fair, Issac & Co., Inc. 17,000 816,000
FTP Software, Inc. 37,200** 1,181,100
Macromedia, Inc. 28,600** 965,250
Medic Computer Systems, Inc. 35,800** 1,557,300
Microtec Research, Inc. 59,600** 745,000
Netmanage, Inc. 36,500** 1,533,000
Network General Corp. 48,700** 1,387,950
Shiva Corp. 30,000** 978,750
Softkey International, Inc. 53,000** 1,444,250
SPS Transaction Co. 32,000** 1,120,000
The Learning Company 50,000** 1,493,750
------------
22,818,951
------------
DRUGS & HEALTH CARE -- 0.6%
Dura Pharmaceuticals 50,000** 743,750
------------
ELECTRONICS -- 14.1%
Act Manufacturing, Inc. 11,400** 162,450
AFC Cable Systems, Inc. 29,300** 454,150
Amphenol Corp. 48,500** 1,212,500
ASM Lithography Holding 33,600** 945,000
Electro Scientific Industries,
Inc. 25,300** 610,363
Fore Systems, Inc. 33,000** 1,303,500
Harman International
Industries, Inc. 34,000 1,262,250
Information Storage Devices,
Inc. 2,700** 58,050
Integrated Silicon Solution,
Inc. 39,000** 1,365,000
International Rectifier Corp. 43,300** 1,039,200
Lam Research Corp. 22,400** 1,002,400
Micrel, Inc. 66,400** 1,162,000
Photronics, Inc. 67,500** 1,535,625
Silicon Valley Group, Inc. 40,000** 1,125,000
Stratacom, Inc. 56,000** 2,408,000
Tencor Instruments 11,400** 675,450
Tower Semiconductor Ltd. 32,400** 639,900
Trimble Navigation, Ltd. 50,000** 950,000
Ultratech Stepper, Inc. 12,000** 583,500
------------
18,494,338
------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 108
SMALL CAP GROWTH EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MACHINERY & HEAVY EQUIPMENT -- 1.0%
FSI International, Inc. 33,100** $ 1,336,413
------------
MEDICAL & MEDICAL SERVICES -- 8.6%
American Homepatient Inc. 42,000** 1,175,125
American Medical Response,
Inc. 20,000** 502,500
Cycare Systems, Inc. 27,000** 590,625
Health Care & Retirement 38,900** 1,225,350
Medaphis Corp. 22,300** 1,404,900
Medpartners, Inc. 11,100** 245,588
Orthodontic Centers of
America, Inc. 71,300** 1,256,663
Phycor, Inc. 46,800** 1,602,900
Sun Healthcare Group, Inc. 45,000** 1,147,500
Vencor, Inc. 35,500** 1,264,688
Vivra, Inc. 29,300** 944,925
------------
11,360,764
------------
MEDICAL INSTRUMENTS & SUPPLIES -- 5.6%
Arrow International, Inc. 16,400 578,100
Gulf South Medical Supply,
Inc. 30,000** 1,222,500
IDEXX Laboratories, Inc. 35,000** 1,452,500
Isolyser Company, Inc. 44,400** 799,200
Omnicare, Inc. 25,000 1,312,500
Orthofix International, N.V. 75,000** 1,331,250
Technol Medical Products, Inc. 33,600** 638,400
------------
7,334,450
------------
PERSONAL SERVICES -- 1.9%
Robert Half International,
Inc. 52,800** 1,346,400
Storage USA, Inc. 40,000 1,165,000
------------
2,511,400
------------
PUBLISHING -- 2.0%
Gartner Group Inc. New Class A
40,000** 1,720,000
Scientific Games Holding
Corp., Inc. 44,000** 913,000
------------
2,633,000
------------
RESTAURANTS -- 3.6%
Bugaboo Creek Steak House,
Inc. 16,400** 205,000
Landry's Seafood Restaurants,
Inc. 44,500** 1,362,813
Morrison Restaurants, Inc. 43,600 959,200
O'Charley's, Inc. 18,000** 211,500
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
RESTAURANTS (CONTINUED)
Papa John's International,
Inc. 18,500** $ 663,686
Quality Dining, Inc. 9,700** 118,825
Rock Bottom Restaurants, Inc. 60,000** 1,237,500
------------
4,758,524
------------
RETAIL MERCHANDISING -- 5.8%
Books-A-Million, Inc. 70,000** 1,023,750
Just for Feet, Inc. 52,600** 1,321,575
Micro Warehouse, Inc. 29,900** 926,900
Movie Gallery, Inc. 40,000** 1,075,000
Petco Animal Supplies, Inc. 32,800** 688,800
Piercing Pagoda, Inc. 24,300** 206,550
Quicksilver, Inc. 26,500** 571,253
Sunglass Hut International,
Inc. 45,500** 1,347,938
Trend-Lines, Inc. 31,000** 406,875
------------
7,568,641
------------
TELECOMMUNICATIONS -- 6.1%
Adtran, Inc. 30,000** 1,672,500
Cascade Communications Corp.
15,000** 1,035,000
Coherent Communications System
Corp. 34,000** 658,750
Dialogic Corp. 20,800** 590,200
EIS International, Inc. 71,000** 1,189,250
Gilat Satellite Networks 55,000** 893,750
LDDS Communications, Inc. 23,400** 546,970
U.S. Robotics Corp. 23,000** 1,437,500
------------
8,023,920
------------
TRAVEL & RECREATION -- 1.9%
Doubletree Corp. 51,000** 1,032,750
Regal Cinemas, Inc. 41,800** 1,034,550
Speedway Motorsports, Inc. 27,600** 496,800
------------
2,564,100
------------
TRUCKING & FREIGHT -- 1.5%
Landstar System, Inc. 32,700** 1,030,050
M.S. Carriers, Inc. 22,700** 510,750
Swift Transportation Co., Inc. 30,000** 465,000
------------
2,005,800
------------
WASTE MANAGEMENT -- 1.0%
United Waste Systems, Inc. 45,500** 1,285,375
------------
TOTAL COMMON STOCKS
(Cost $90,569,688) 116,241,402
------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 109
SMALL CAP GROWTH EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C>
CORPORATE BONDS -- 1.0%
Sholodge, Inc.
7.50% 05/01/04 $ 1,500 $ 1,297,500
------------
(Cost $1,500,000)
TOTAL INVESTMENTS IN SECURITIES
(Cost $108,414,011*) 101.7% 133,883,225
LIABILITIES IN EXCESS OF OTHER
ASSETS (1.7%) (2,248,573)
------ ------------
NET ASSETS (Applicable to
8,295,570 Institutional
shares, 2,733,726 Service
shares and 279,175 Series A
Investor shares outstanding) 100.0% $131,634,652
======= ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($96,600,862 / 8,295,570) $11.64
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SERVICE
SHARE
($31,794,267 / 2,733,726) $11.63
======
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------
<S> <C>
NET ASSET VALUE AND REDEMPTION
PRICE PER SERIES A INVESTOR
SHARE ($3,239,523 / 279,175) $11.60
======
MAXIMUM OFFERING PRICE PER
SERIES A INVESTOR SHARE
($11.60 / .955) $12.15
------
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross
unrealized appreciation (depreciation) on a tax basis is
as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $26,506,032
Gross unrealized depreciation (1,036,818)
-----------
$25,469,214
===========
</TABLE>
** Non-income producing security.
See accompanying notes to financial statements.
10
<PAGE> 110
THE PNC(R) FUND
CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C>
AGENCY OBLIGATIONS -- 16.9%
FEDERAL HOME LOAN BANK DISCOUNT NOTES
6.25% 04/03/95 $28,355 $ 28,345,155
------------
(Cost $28,345,155)
<CAPTION>
NUMBER
OF SHARES
---------
<S> <C> <C>
COMMON STOCKS -- 82.1%
AEROSPACE -- 2.2%
Boeing Co. 48,000 2,586,000
United Technologies Corp. 15,000 1,036,875
------------
3,622,875
------------
APPAREL -- 0.7%
Limited, Inc. 50,000 1,156,250
------------
AUTOMOTIVE -- 0.8%
Ford Motor Co. 52,000 1,404,000
------------
BANKS -- 1.8%
BankAmerica Corp. 14,000 675,500
Citicorp 25,000 1,062,500
NationsBank Corp. 26,000 1,319,500
------------
3,057,500
------------
BEVERAGES -- 0.8%
Coca-Cola Co. 17,500 988,750
Pepsico, Inc. 8,500 331,500
------------
1,320,250
------------
BROADCASTING -- 0.7%
British Sky Broadcasting Group
PLC 46,000** 1,132,750
------------
CHEMICALS -- 5.3%
Air Products & Chemicals, Inc. 27,000 1,407,375
Dow Chemical Co. 40,000 2,920,000
E.I. Dupont de Nemours & Co. 45,000 2,722,500
PPG Industries, Inc. 22,000 830,500
Rohm & Haas Co. 18,000 1,062,000
------------
8,942,375
------------
COMPUTER & OFFICE EQUIPMENT -- 2.4%
Intel Corp. 30,000 2,546,250
Pitney Bowes, Inc. 41,000 1,476,000
------------
4,022,250
------------
COMPUTER SOFTWARE & SERVICES -- 0.3%
Microsoft Corp. 8,000** 569,000
------------
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
CONSTRUCTION -- 2.6%
Fluor Corp. 46,000 $ 2,219,500
Foster Wheeler Corp. 33,000 1,117,875
Masco Corp. 38,000 1,049,750
------------
4,387,125
------------
CONSUMER NON-DURABLES -- 1.6%
Dial Corp. 105,000 2,664,375
------------
DRUGS & HEALTH CARE -- 2.2%
American Home Products Corp. 35,000 2,493,750
Tambrands, Inc. 28,000 1,249,500
------------
3,743,250
------------
ELECTRONICS -- 7.4%
AMP, Inc. 58,000 2,088,000
Emerson Electric Co. 27,000 1,795,500
General Electric Co. 73,100 3,956,538
General Instruments Corp. 46,000** 1,598,500
Motorola, Inc. 43,000 2,348,875
W. W. Grainger, Inc. 10,000 630,000
------------
12,417,413
------------
ENERGY & RAW MATERIALS -- 0.6%
Schlumberger, Ltd. 18,000 1,073,250
------------
ENERGY & UTILITIES -- 1.4%
Cinergy Corp. 20,200 502,475
PECO Energy Co. 76,000 1,909,500
------------
2,411,975
------------
FINANCE -- 3.2%
Dean Witter Discover & Co. 31,000 1,263,250
Federal National Mortgage
Association 39,000 3,173,625
First Financial Management
Corp. 12,000 867,000
------------
5,303,875
------------
FOOD & AGRICULTURE -- 1.9%
CPC International, Inc. 15,000 811,875
H.J. Heinz Co. 23,000 885,500
Sara Lee Corp. 57,000 1,489,125
------------
3,186,500
------------
INSURANCE -- 2.8%
American International Group,
Inc. 25,000 2,606,250
General Re Corp. 7,000 924,000
United Healthcare Corp. 26,000 1,215,500
------------
4,745,750
------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 111
CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MACHINERY & HEAVY EQUIPMENT -- 1.4%
Novellus System, Inc. 37,000** $ 2,294,000
------------
MANUFACTURING -- 2.5%
Illinois Tool Works, Inc. 43,000 2,101,625
Minnesota Mining &
Manufacturing Co. 35,000 2,034,375
------------
4,136,000
------------
MEDICAL & MEDICAL SERVICES -- 1.6%
Columbia Healthcare, Corp. 61,000 2,623,000
------------
OIL DOMESTIC -- 3.1%
Atlantic Richfield Co. 12,000 1,380,000
Noble Affiliates, Inc. 32,000 876,000
Sun, Inc. 39,000 1,111,500
Unocal Corp. 62,000 1,782,500
------------
5,150,000
------------
OIL INTERNATIONAL -- 5.1%
Amoco Corp. 40,000 2,545,000
Chevron Corp. 41,700 2,001,600
Mobil Corp. 21,000 1,945,125
Royal Dutch Petroleum Co. 17,000 2,040,000
------------
8,531,725
------------
PAPER & FOREST PRODUCTS -- 1.6%
International Paper Co. 12,000 901,500
Temple Inland, Inc. 21,000 942,375
Union Camp Corp. 15,000 778,125
------------
2,622,000
------------
PHARMACEUTICAL PREPARATIONS -- 2.9%
Eli Lilly & Co. 21,000 1,535,624
Johnson & Johnson 37,000 2,201,500
Pfizer, Inc. 14,400 1,234,800
------------
4,971,924
------------
PUBLISHING -- 1.0%
News Corp. Ltd. ADR 90,000 1,721,250
------------
RAILROADS & SHIPPING -- 4.3%
Burlington Northern, Inc. 41,000 2,434,375
Conrail Corp. 45,000 2,525,625
CSX Corp. 30,000 2,362,500
------------
7,322,500
------------
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
RESTAURANTS -- 1.3%
Brinker International, Inc. 65,000** $ 1,080,625
McDonalds Corp. 33,000 1,126,125
------------
2,206,750
------------
RETAIL MERCHANDISING -- 4.1%
J. C. Penney Co., Inc. 34,000 1,525,750
K Mart Corp. 44,000 605,000
May Department Stores Co. 44,000 1,628,000
Toys 'R' Us, Inc. 35,000* 896,875
Wal-Mart Stores, Inc. 91,000 2,320,500
------------
6,976,125
------------
SOAPS & COSMETICS -- 0.4%
Colgate-Palmolive Co. 11,000 726,000
------------
TELECOMMUNICATIONS -- 8.8%
Adobe Systems, Inc. 15,000 742,500
Alltel Corp. 94,000 2,702,500
AT&T Corp. 82,000 4,243,500
Bell Atlantic Corp. 34,000 1,793,500
GTE Corp. 49,000 1,629,250
Oracle Systems Corp. 37,000** 1,156,250
SBC Communications, Inc. 58,000 2,443,250
------------
14,710,750
------------
TOBACCO -- 1.5%
Philip Morris Cos., Inc. 40,000 2,610,000
------------
TRAVEL & RECREATION -- 3.8%
Mirage Resorts, Inc. 94,000** 2,632,000
Promus Cos., Inc. 60,000** 2,250,000
Walt Disney Co. 28,000 1,494,500
------------
6,376,500
------------
TOTAL COMMON STOCKS
(Cost $127,666,565) 138,139,287
------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 112
CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C>
CORPORATE BONDS -- 0.9%
MANUFACTURING
Apache Corp.
6.00% 01/15/02 $ 1,400 $ 1,526,000
------------
(Cost $1,400,000)
TOTAL INVESTMENTS IN SECURITIES
(Cost $157,411,720*) 99.9% 168,010,442
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 231,409
------- -----------
NET ASSETS (Applicable to
10,547,693 Institutional
shares, 5,441,696 Service
shares and 158,961 Series A
Investor shares outstanding) 100.0% 168,241,851
======= ===========
NET ASSET VALUE AND
REDEMPTION PRICE PER
INSTITUTIONAL, SERVICE AND
SERIES A INVESTOR SHARE
($168,241,851 / 16,148,350) $10.42
======
<CAPTION>
VALUE
------------
<S> <C> <C>
OFFERING PRICE PER
INSTITUTIONAL AND SERVICE
SHARE $10.42
======
MAXIMUM OFFERING PRICE PER SERIES
A INVESTOR SHARE
($10.42 / .955) $10.91
======
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $12,468,778
Gross unrealized depreciation (1,870,056)
-----------
$10,598,722
===========
</TABLE>
** Non-income producing security.
See accompanying notes to financial statements.
13
<PAGE> 113
THE PNC(R) FUND
INDEX EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C>
AGENCY OBLIGATIONS -- 13.6%
FEDERAL HOME LOAN MORTGAGE CORPORATION
DISCOUNT NOTES
5.91% 04/03/95 $ 5,000 $ 4,998,358
6.25% 04/03/95 19,745 19,738,144
5.93% 04/10/95 2,000 1,997,035
------------
TOTAL AGENCY OBLIGATIONS
(Cost $26,733,537) 26,733,537
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES
---------
<S> <C> <C>
COMMON STOCK -- 85.8%
ADVERTISING -- 0.0%
Interpublic Group of Cos.,
Inc. 200 7,475
------------
AEROSPACE -- 1.6%
Boeing Co. 16,200 872,774
General Dynamics Corp. 3,100 145,700
Lockheed Martin Corp. 9,553 505,115
Mc Donnell Douglas Corp. 5,400 301,050
Northrop Grumman Corp. 2,200 107,524
Rockwell International Corp. 10,200 397,800
Textron, Inc. 4,400 249,150
United Technologies Corp. 5,800 400,924
------------
2,980,037
------------
AIR TRANSPORT -- 0.4%
A.M.R. Corp. 3,500** 226,624
Delta Air Lines, Inc. 2,500 156,874
Federal Express Corp. 2,700** 182,587
Southwest Airlines Co. 6,600 117,974
U.S. Air Group, Inc. 2,800** 17,150
------------
701,209
------------
APPAREL -- 0.7%
Brown Group, Inc. 600 17,400
Charming Shoppes, Inc. 4,900 27,562
Gap, Inc. 7,100 252,050
Hartmarx Corp. 1,500 8,062
Limited, Inc. 16,900 390,812
Liz Claiborne, Inc. 3,900 69,224
Nike, Inc. 3,600 268,650
Oshkosh B' Gosh, Inc. 800 11,400
Reebok International, LTD. 3,900 138,937
Russell Corp. 1,900 56,287
Spring Industries, Inc. 600 22,500
Stride Rite Corp. 2,500 31,562
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
APPAREL (CONTINUED)
V.F. Corp. 3,000 $ 159,374
------------
1,453,820
------------
AUTOMOTIVE -- 2.3%
Chrysler Corp. 16,900 707,687
Cummins Engine Co., Inc. 2,100 93,974
Dana Corp. 4,700 119,850
Eaton Corp. 3,500 189,874
Echlin, Inc. 2,900 111,650
Ford Motor Co. 47,900 1,293,300
General Motors Corp. 35,400 1,566,450
Genuine Parts Co. 5,800 231,274
Navistar International Corp. 1,620** 20,654
S.P.X. Corp. 800 11,600
Skyline Corp. 600 10,650
Strattec Security Corp. 320** 3,600
T.R.W., Inc. 3,200 220,400
------------
4,580,963
------------
BANKS -- 4.4%
Banc One Corp. 19,845 565,582
Bank of Boston Corp. 5,600 166,600
BankAmerica Corp. 17,612 849,778
Bankers Trust New York Corp. 3,500 182,874
Barnett Banks, Inc. 5,000 227,500
Boatmens Bancshares, Inc. 5,500 166,374
Chase Manhattan Corp. 8,900 317,062
Chemical Banking Corp. 12,430 469,232
Citicorp 18,900 803,250
CoreStates Financial Corp. 7,400 236,800
First Chicago Corp. 4,700 235,587
First Fidelity Bancorp 4,000 198,000
First Interstate Bancorp 3,900 308,100
First Union Corp. 8,460 366,952
Fleet Financial Group, Inc. 6,900 223,387
Keycorp 12,000 339,000
MBNA Corp. 9,450 274,050
Mellon Bank Corp. 5,250 213,937
N.B.D. Bancorp, Inc. 7,950 258,374
Nationalcity Corp. 7,500 199,687
NationsBank Corp. 13,047 662,134
Norwest Corp. 15,300 388,237
Shawmut National Corp. 6,200 163,524
Suntrust Banks, Inc. 6,200 331,700
U.S. Bancorp 4,950 128,700
Wells Fargo & Co. 2,700 422,212
------------
8,698,633
------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 114
INDEX EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
BEVERAGES -- 3.2%
Anheuser-Busch Cos., Inc. 12,400 $ 726,950
Brown Forman Corp. 3,400 113,474
Coca Cola Co. 61,100 3,452,150
Coors (Adolph) Co. "B" 1,700 27,837
Pepsico, Inc. 37,700 1,470,300
Seagram Co., LTD. 17,800 565,150
------------
6,355,861
------------
BROADCASTING -- 0.8%
CBS, Inc. 3,000 192,000
Capital Cities A.B.C., Inc. 5,000 441,250
Comcast Corp. Special Class A
Non-Voting 1,650 25,780
Cox Communications, Inc. Class
A 3,282** 54,973
Tele Communications, Inc.
Class A New 26,300** 552,300
Viacom, Inc. Common Non Voting
7,213 322,781
------------
1,589,084
------------
BUSINESS MACHINES -- 1.7%
D.S.C. Communication Corp. 5,200** 169,324
Harris Computer Systems Corp. 90** 1,574
Intergraph Corp. 2,000** 23,750
International Business
Machines Corp. 27,800 2,276,124
Pitney Bowes, Inc. 7,500 270,000
Unisys Corp. 8,100** 74,924
Xerox Corp. 5,200 610,350
------------
3,426,046
------------
BUSINESS SERVICES -- 0.6%
Alco Standard Corp. 2,800 203,000
Automatic Data Processing,
Inc. 6,700 422,100
Deluxe Corp. 4,000 114,000
Ecolab, Inc. 2,800 67,900
First Data Corp. 5,000 259,374
John H. Harland Co. 1,500 33,937
Moore Corp., LTD. 4,600 89,700
National Education Corp. 1,300** 4,224
Ogden Corp. 2,000 40,250
Shared Medical Systems Corp. 900 32,962
------------
1,267,447
------------
CHEMICALS -- 3.3%
Air Products & Chemicals, Inc. 5,300 276,262
B.F. Goodrich Co. 1,000 44,374
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
CHEMICALS (CONTINUED)
Dow Chemical Co. 13,300 $ 970,900
E.I. Dupont de Nemours & Co. 32,200 1,948,100
Eastman Chemical Co. 3,925 218,327
Engelhard Corp. 4,425 131,090
F.M.C. Corp. 1,600 96,800
First Mississippi Corp. 1,200 31,500
Great Lakes Chemical Corp. 3,400 212,074
Hercules, Inc. 5,400 251,774
Mallinckrodt Group, Inc. 3,700 124,874
Monsanto Co. 5,500 441,374
Morton International, Inc. 6,900 200,100
Nalco Chemical Co. 3,300 110,963
P.P.G. Industries, Inc. 9,900 373,725
Praxair, Inc. 6,600 153,450
Rohm & Haas Co. 3,400 200,600
Safety-Kleen Corp. 2,700 48,263
Sherwin Williams Co. 4,000 135,500
Sigma Aldrich Corp. 2,300 89,125
Union Carbide Corp. 7,300 223,563
W.R. Grace & Co. 4,300 228,975
------------
6,511,713
------------
COMPUTER AND OFFICE EQUIPMENT -- 3.4%
Amdahl Corp. 5,600** 61,600
Apple Computer, Inc. 5,700 200,925
Autodesk, Inc. 2,300 96,888
Ceridian Corp. 2,000** 66,750
COMPAQ Computer Corp. 12,100** 417,450
Computer Associates
International, Inc. 7,800 463,125
Computer Sciences Corp. 2,500 123,438
Cray Research, Inc. 1,100** 20,213
Data General Corp. 1,500** 11,063
Digital Equipment Corp. 6,300** 238,613
INTEL Corp. 20,000 1,697,500
Lotus Development Corp. 2,400** 91,800
Microsoft Corp. 27,300** 1,941,713
Novell, Inc. 17,400** 330,600
Oracle Systems Corp. 20,400** 637,500
Sun Microsystems, Inc. 4,360** 151,510
Tandem Computers, Inc. 5,500** 85,250
------------
6,635,938
------------
CONGLOMERATES -- 0.3%
I.T.T. Corp. 4,900 502,863
------------
CONSTRUCTION -- 1.0%
Armstrong World Industries,
Inc. 1,700 77,563
Centex Corp. 1,300 31,363
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 115
INDEX EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
CONSTRUCTION (CONTINUED)
Corning, Inc. 10,000 $ 360,000
Fluor Corp. 3,900 188,175
Foster Wheeler Corp. 1,600 54,200
Halliburton Co. 5,300 192,788
Home Depot, Inc. 21,582 955,004
Kaufman & Broad Home Corp. 1,700 20,188
Morrison Knudson Corp. 1,300 7,800
Owens-Corning Fiberglass Corp. 1,900** 68,400
Pulte Corp. 1,100 25,850
------------
1,981,331
------------
CONSUMER DURABLES -- 0.3%
Bassett Furniture, Inc. 750 19,688
Black & Decker Corp. 4,000 115,500
Maytag Corp. 5,300 90,763
Newell Co. 7,600 193,800
Outboard Marine Corp. 700 14,700
Whirlpool Corp. 3,600 197,100
Zenith Electronics Corp. 1,800** 13,950
------------
645,501
------------
CONSUMER NON-DURABLES -- 0.3%
Brunswick Corp. 4,300 86,538
Handleman Co. 1,500 16,125
Premark International, Inc. 2,800 123,550
Rubbermaid, Inc. 7,500 247,500
Service Corp. International 4,100 114,800
------------
588,513
------------
CONTAINERS -- 0.1%
Ball Corp. 1,600 55,000
Crown Cork & Seal Co., Inc. 4,200 184,275
------------
239,275
------------
DRUGS AND HEALTH CARE -- 6.5%
Abbott Laboratories, Inc. 38,900 1,385,813
Allergan, Inc. 3,000 88,500
Alza Corp. 3,900** 82,875
American Home Products Corp. 14,400 1,026,000
Amgen, Inc. 6,100 410,988
Beverly Enterprises, Inc. 3,800** 55,100
Bristol-Myers Squibb Co. 24,200 1,524,600
Columbia HCA Healthcare Corp. 500 21,500
Community Psychiatric Centers 2,100 27,038
Eli Lilly & Co. 13,800 1,009,125
Johnson & Johnson 30,700 1,826,650
Manor Care, Inc. 2,950 89,606
Merck & Co., Inc. 56,700 2,416,838
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
DRUGS AND HEALTH CARE (CONTINUED)
Pfizer, Inc. 14,700 $ 1,260,525
Schering Plough Corp. 9,100 676,813
U. S. Surgical, Corp. 2,700 61,425
Upjohn Co. 8,300 296,725
Warner Lambert Co. 6,300 492,975
------------
12,753,096
------------
ELECTRONICS -- 3.4%
A.M.P., Inc. 10,200 367,200
Advanced Micro Devices, Inc. 4,700** 159,213
Andrew Corp. 1,725** 70,294
E Systems, Inc. 1,400 63,525
E.G.& G., Inc. 2,800 42,000
Emerson Electric Co. 10,800 718,200
General Signal Corp. 2,300 81,938
Harris Corp. 1,800 86,175
Hewlett Packard Co. 11,400 1,372,275
Honeywell, Inc. 6,400 239,200
Johnson Controls, Inc. 1,800 91,575
Loral Corp. 3,900 165,750
M.A. Communications, Inc. 1,500 14,813
Micron Technology, Inc. 4,550 345,800
Motorola, Inc. 26,900 1,469,413
National Semiconductor Corp. 5,800** 101,500
Raytheon Co. 6,500 473,688
Scientific Atlanta Corp. 3,600 84,150
Tektronix, Inc. 1,200 48,000
Teledyne, Inc. 2,800 73,500
Texas Instruments, Inc. 4,400 389,400
Thomas & Betts Corp. 1,100 71,225
Westinghouse Electric Corp. 16,500 233,063
------------
6,761,897
------------
ENERGY AND RAW MATERIALS -- 2.2%
Baker Hughes, Inc. 6,700 136,513
Dresser Industries, Inc. 7,900 167,875
Eastern Enterprises 1,100 30,525
Helmerich & Payne, Inc. 1,000 27,125
Royal Dutch Petroleum Co. 25,500 3,060,000
Schlumberger, LTD. 11,400 679,725
USX-Marathon Group, Inc. 13,800 241,500
------------
4,343,263
------------
ENERGY AND UTILITIES -- 3.9%
American Electric Power Co.,
Inc. 8,800 279,400
Baltimore Gas & Electric Co. 7,200 170,100
Carolina Power & Light Co. 7,500 203,438
Central & South West Corp. 9,000 218,250
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 116
INDEX EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
ENERGY AND UTILITIES (CONTINUED)
Cinergy Corp. 3,375 $ 83,953
Coastal Corp. 4,850 139,438
Columbia Gas System, Inc. 2,500** 74,063
Consolidated Edison Co., Inc. 11,200 305,200
Consolidated Natural Gas Co. 4,500 173,813
Detroit Edison Co. 7,100 194,363
Dominion Resources, Inc. 8,150 293,400
Duke Power Co. 9,700 373,450
Enron Corp. 11,800 389,400
Enserch Corp. 3,400 50,575
Entergy Corp. 10,700 223,363
F.P.L. Group, Inc. 8,600 312,825
Houston Industries, Inc. 6,000 228,750
Niagara Mohawk Power Corp. 6,600 90,750
Nicor, Inc. 2,700 67,500
Noram Energy Corp. 6,000 32,250
Northern States Power Co. 3,200 140,800
Ohio Edison Co. 7,200 144,000
Oneok, Inc. 1,100 20,763
Oryx Energy Co. 4,400 55,550
Pacific Enterprises 4,000 99,000
Pacific Gas & Electric Co. 20,100 499,988
Pacificorp 13,400 259,625
Panhandle Eastern Corp. 5,500 126,500
PECO Energy Co. 10,300 258,788
Peoples Energy Corp. 1,500 37,500
Public Service Enterprise
Group, Inc. 11,800 323,025
SCECORP 21,200 331,250
Sonat, Inc. 4,100 123,000
Southern Co. 31,000 631,625
Texas Utilities Co. 10,400 330,200
Transco Energy Co. 572 10,868
Unicom Corp. 10,300 244,625
Union Electric Co. 4,900 173,338
------------
7,714,726
------------
FINANCE -- 2.6%
Beneficial Corp. 4,200 164,850
Dean Witter Discover & Co. 9,811 399,798
Federal Home Loan Mortgage
Corp. 8,800 532,400
Federal National Mortgage
Association 14,000 1,139,250
Golden West Financial Corp. 4,500 172,125
Great Western Financial Corp. 9,700 181,875
H.F. Ahmanson & Co. 8,900 160,200
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
FINANCE (CONTINUED)
Household International, Inc. 5,900 $ 256,650
J.P. Morgan & Co., Inc. 8,800 536,800
Merrill Lynch & Co., Inc. 11,000 468,875
Salomon, Inc. 6,600 223,575
Travelers, Inc. 17,547 677,753
Wachovia Corp. 6,000 213,000
------------
5,127,151
------------
FOOD AND AGRICULTURE -- 2.6%
Archer-Daniels-Midland Co. 24,715 460,317
C.P.C. International, Inc. 6,900 373,463
Campbell Soup Co. 11,900 575,663
Conagra, Inc. 12,000 397,500
Fleming Cos., Inc. 1,700 38,463
General Mills, Inc. 7,300 435,263
H.J. Heinz Co. 11,900 458,150
Hershey Foods Corp. 4,000 204,500
Kellogg Co. 10,600 618,775
Pioneer HI Bred International,
Inc. 300 10,800
Quaker Oats Co. 6,600 218,625
Ralcorp Holdings, Inc. 2,033** 48,284
Ralston Purina Group 4,800 229,200
Sara Lee Corp. 22,700 593,038
Sysco Corp. 8,900 233,625
W.M. Wrigley Jr. Co. 5,400 239,625
------------
5,135,291
------------
INSURANCE -- 3.0%
Aetna Life & Casualty Co. 5,100 290,700
Alexander & Alexander
Services, Inc. 1,900 44,888
American General Corp. 10,000 322,500
American International Group,
Inc. 14,775 1,540,294
CHUBB Corp. 4,100 323,900
Cigna Corp. 3,400 254,150
Continental Corp. 2,700 52,988
General Re Corp. 4,000 528,000
Jefferson Pilot Corp. 2,250 133,031
Lincoln National Corp. 4,300 173,075
Marsh & Mc Lennan Cos., Inc. 3,600 295,650
Providian Corp. 4,500 158,063
Safeco Corp. 3,200 175,200
St. Paul Cos., Inc. 4,200 210,000
Torchmark Corp 3,300 136,950
Transamerica Corp. 3,200 181,200
U.S. Life Corp. 850 32,406
U.S.F. & G. Corp. 4,200 58,800
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 117
INDEX EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
INSURANCE (CONTINUED)
United Healthcare Corp. 8,200 $ 383,350
UNUM Corp. 3,500 158,375
US Healthcare, Inc. 7,800 345,150
------------
5,798,670
------------
MACHINERY AND HEAVY EQUIPMENT -- 0.5%
Caterpillar, Inc. 9,600 534,000
Clark Equipment Co. 600** 49,500
Deere & Co. 4,300 349,375
Giddings & Lewis, Inc. 1,800 30,600
Mc Dermott International, Inc. 2,600 71,175
------------
1,034,650
------------
MANUFACTURING -- 1.1%
AlliedSignal, Inc. 13,200 518,100
Masco Corp. 7,200 198,900
Millipore Corp. 1,200 66,900
Minnesota Mining &
Manufacturing Co. 19,900 1,156,688
Nacco Industries, Inc. 500 27,250
National Service Industries,
Inc. 2,500 67,500
Whitman Corp. 4,800 91,800
------------
2,127,138
------------
MEDIA -- 0.8%
Gannett Co., Inc. 7,000 373,625
King World Productions, Inc. 1,600** 63,000
Knight-Ridder, Inc. 2,300 129,950
New York Times Co. 4,700 108,688
Time-Warner, Inc. 17,800 671,950
Tribune Co. 3,400 187,850
------------
1,535,063
------------
MEDICAL AND MEDICAL SERVICES -- 0.1%
National Medical Enterprises,
Inc. 7,700 122,238
------------
MEDICAL INSTRUMENTS AND SUPPLIES -- 0.7%
Bausch & Lomb, Inc. 3,000 107,250
Baxter International, Inc. 13,400 438,850
Becton, Dickinson & Co. 3,600 195,300
Biomet, Inc. 5,600** 94,500
C.R. Bard, Inc. 2,500 69,063
Medtronic, Inc. 5,500 381,563
Perkin Elmer Corp. 2,000 58,250
St. Jude Medical, Inc. 2,300 99,475
------------
1,444,251
------------
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
METALS AND MINING -- 1.2%
Alcan Aluminum, LTD. 10,700 $ 284,888
Aluminum Co. of America 8,000 331,000
Asarco, Inc. 1,900 50,113
Barrick Gold Corp. 16,400 410,000
Cyprus Amax Minerals Co. 4,550 129,106
Echo Bay Mines, LTD. 5,200 53,950
Homestake Mining Co. 6,500 120,250
Inco, LTD. 5,400 150,525
Newmont Mining Corp. 3,992 170,658
Phelps Dodge Corp. 3,500 199,063
Placer Dome, Inc. 11,400 277,875
Reynolds Metals Co. 3,000 147,750
Santa Fe Pacific Gold Corp. 5,551** 70,081
------------
2,395,259
------------
OIL DOMESTIC -- 1.6%
Ashland, Inc. 2,800 99,750
Atlantic Richfield Co. 7,700 885,500
Burlington Resources, Inc. 400 16,300
Kerr-McGee Corp. 2,300 117,300
Louisiana Land & Exploration
Co. 1,700 63,538
Occidental Petroleum Corp. 15,000 328,125
Pennzoil Co. 2,300 108,963
Phillips Petroleum Co. 12,600 461,475
Rowan Cos., Inc. 3,900 25,350
Santa Fe Energy Resources,
Inc. 3,980** 38,308
Sun Co., Inc. 4,700 133,950
Tenneco, Inc. 8,100 381,713
Unocal Corp. 11,300 324,875
Western Atlas, Inc. 2,200** 94,875
Williams Cos., Inc. 5,000 153,125
------------
3,233,147
------------
OIL INTERNATIONAL -- 5.0%
Amerada Hess Corp. 4,500 222,188
Amoco Corp. 23,600 1,501,550
Chevron Corp. 30,800 1,478,400
Exxon Corp. 58,900 3,931,575
Maxus Energy Corp. 6,700 36,850
Mobil Corp. 18,800 1,741,350
Texaco, Inc. 12,300 817,950
------------
9,729,863
------------
PAPER AND FOREST PRODUCTS -- 1.7%
Avery Dennison Corp. 2,500 99,688
Bemis Co., Inc. 2,300 67,563
Boise Cascade Corp. 1,700 59,075
Champion International, Inc. 4,200 181,650
Federal Paper Board, Inc. 1,900 54,150
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 118
INDEX EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
PAPER AND FOREST PRODUCTS (CONTINUED)
Georgia Pacific Corp. 4,200 $ 334,950
International Paper Co. 5,700 428,213
James River Corp. 4,000 104,000
Kimberly Clark Corp. 7,800 405,600
Louisiana-Pacific Corp. 5,100 140,888
Mead Corp. 3,000 160,875
Potlatch Corp. 1,200 50,550
Scott Paper Co. 3,300 294,938
Stone Container Corp. 4,086 93,467
Temple Inland, Inc. 2,800 125,650
Union Camp Corp. 3,300 171,188
Westvaco Corp. 3,400 141,100
Weyerhaeuser Co. 9,800 380,975
------------
3,294,520
------------
PERSONAL SERVICES -- 0.1%
H&R Block, Inc. 5,200 225,550
------------
PHOTOGRAPHIC EQUIPMENT -- 0.5%
Eastman Kodak Co. 15,800 839,375
Polaroid Corp. 2,100 72,975
------------
912,350
------------
PRODUCER GOODS -- 3.1%
Briggs & Stratton Corp. 1,600 59,000
Cincinnati Milacron, Inc. 1,600 36,600
Cooper Industries, Inc. 5,300 205,375
Crane Co. 1,350 41,006
Dover Corp. 2,800 181,300
General Electric Co. 76,200 4,124,325
Harnischfeger Industries, Inc. 1,376 38,528
Illinois Tool Works, Inc. 5,500 268,813
Ingersoll Rand Co. 5,100 167,663
Paccar, Inc. 1,800 76,500
Pall Corp. 5,566 116,886
Parker-Hannifin Corp. 2,300 101,775
Raychem Corp. 1,900 77,188
Snap ON, Inc. 2,000 73,000
Stanley Works 1,900 74,813
Timken Co. 1,300 46,150
Trinova Corp. 1,200 36,750
Tyco International, LTD. 2,600 137,475
Varity Corp. 1,490** 56,620
W.W. Grainger, Inc. 2,400 151,200
Worthington Industries, Inc. 4,400 87,450
Zurn Industries, Inc. 700 12,863
------------
6,171,280
------------
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
PUBLISHING -- 0.7%
American Greetings Corp. 3,400 $ 101,575
Dow Jones & Co., Inc. 4,500 170,438
Dun & Bradstreet Corp. 8,300 436,788
Mc Graw Hill, Inc. 2,400 172,200
Meredith Corp. 1,800 46,800
R.R. Donnelly & Sons, Inc. 7,200 247,500
Times Mirror Class A Escrow
Shs 6,000** 0
Times Mirror Co. Series A New 6,000 115,500
------------
1,290,801
------------
RAILROADS AND SHIPPING -- 1.0%
Burlington Northern, Inc. 4,100 243,438
C.S.X. Corp. 5,200 409,500
Consolidated Rail Corp. 3,700 207,663
Norfolk Southern Corp. 6,500 434,688
Santa Fe Pacific Corp. 8,752 201,296
Union Pacific Corp. 9,800 539,000
------------
2,035,585
------------
RESTAURANTS -- 0.7%
Luby's Cafeterias, Inc. 1,150 24,438
Mc Donald's Corp. 33,400 1,139,775
Ryan's Family Steak Houses,
Inc. 2,700** 18,225
Shoney's, Inc. 1,900** 20,425
Wendy's International, Inc. 4,800 78,600
------------
1,281,463
------------
RETAIL MERCHANDISING -- 4.5%
Albertsons, Inc. 12,000 387,000
American Stores Co. 6,900 176,813
Bruno's, Inc. 3,800 34,200
Circuit City Stores, Inc. 4,500 118,688
Dayton Hudson Corp. 3,200 228,800
Dillard Department Stores,
Inc. 5,600 154,700
Giant Food, Inc. 3,000 71,625
Great Atlantic & Pacific Tea
Co., Inc. 1,700 38,463
Harcourt General, Inc. 3,500 136,500
Hasbro, Inc. 4,200 141,750
J.C. Penney Co., Inc. 11,200 502,600
Jostens, Inc. 2,100 41,738
K Mart Corp. 21,700 298,375
Kroger Co. 5,300** 139,788
Longs Drug Stores, Inc. 800 26,500
Lowe's Cos., Inc. 7,600 262,200
Mattel, Inc. 9,062 223,152
May Department Stores Co. 12,000 444,000
</TABLE>
See accompanying notes to financial statements.
19
<PAGE> 119
INDEX EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (CONTINUED)
RETAIL MERCHANDISING (CONTINUED)
Melville Corp. 5,100 $ 189,975
Mercantile Stores Co., Inc. 1,700 75,863
Nordstrom, Inc. 4,000 163,000
Pep Boys-Manny, Moe & Jack 3,100 96,100
Price Costco, Inc. 6,238** 92,011
Rite Aid Corp. 4,200 102,900
Sears, Roebuck & Co. 16,900 902,038
Super Valu, Inc. 3,400 90,950
T.J.X. Cos., Inc. 3,700 48,563
Tandy Corp. 3,200 152,800
Toys "R" Us, Inc. 7,100** 181,938
Wal-Mart Stores, Inc. 109,000 2,779,500
Walgreen Co. 5,800 279,125
Winn-Dixie Stores, Inc. 3,500 195,563
Woolworth Corp. 6,200 113,925
------------
8,891,143
------------
SOAPS AND COSMETICS -- 2.7%
Alberto-Culver Co. 1,200 35,550
Avon Products, Inc. 3,400 205,700
Clorox Co. 2,700 162,000
Colgate-Palmolive Co. 7,200 475,200
Dial Corp. 4,500 114,188
Gillette Co. 10,300 840,738
International Flavors &
Fragrances, Inc. 5,300 273,613
Proctor & Gamble Co. 32,616 2,160,810
Unilever N.V. 7,700 1,010,625
------------
5,278,424
------------
STEEL -- 0.3%
Armco, Inc. 5,100** 35,063
Bethlehem Steel Corp. 5,000** 80,625
Inland Steel Industries, Inc. 2,100** 57,750
Nucor Corp. 4,100 230,625
USX-US Steel Group, Inc. 3,500 118,125
------------
522,188
------------
TELECOMMUNICATIONS -- 7.4%
Airtouch Communications, Inc. 23,500 640,375
Ameritech Corp. 25,900 1,068,375
AT&T Corp. 74,720 3,866,760
Bell Atlantic Corp. 20,700 1,091,925
Bellsouth Corp. 23,800 1,416,100
G.T.E. Corp. 45,200 1,502,900
MCI Communications Corp. 30,400 627,000
Northern Telecom, LTD. 11,800 446,925
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
TELECOMMUNICATIONS (CONTINUED)
NYNEX Corp. 20,000 $ 792,500
Pacific Telesis Group 20,000 605,000
Southwestern Bell Corp. 28,400 1,196,350
Sprint Corp. 16,200 490,050
U.S. West, Inc. 21,200 848,000
------------
14,592,260
------------
TIRES AND RUBBER -- 0.2%
Cooper Tire & Rubber Co. 4,000 113,500
Goodyear Tire & Rubber Co. 7,100 260,925
------------
374,425
------------
TOBACCO -- 1.7%
American Brands, Inc. 9,700 380,725
Philip Morris Cos., Inc. 41,300 2,694,825
U.S.T., Inc. 9,800 311,150
------------
3,386,700
------------
TRAVEL AND RECREATION -- 1.0%
Bally Entertainment Corp. 2,200** 18,700
Fleetwood Enterprises, Inc. 2,200 51,975
Hilton Hotels Corp. 2,300 170,488
Marriott International, Inc. 6,000 208,500
Promus Cos., Inc. 5,000** 187,500
Walt Disney Co. 25,600 1,366,400
------------
2,003,563
------------
TRUCKING AND FREIGHT -- 0.1%
Consolidated Freightways, Inc. 1,800 47,925
Pittston Services Group 2,200 60,500
Roadway Services, Inc. 1,800 86,850
Ryder System, Inc. 3,600 86,400
Yellow Corp. 1,100 17,600
------------
299,275
------------
WASTE MANAGEMENT -- 0.5%
Browning Ferris Industries,
Inc. 9,500 323,000
Rollins Environmental
Services, Inc. 2,800 11,900
WMX Technologies, Inc. 23,000 632,500
------------
967,400
------------
TOTAL COMMON STOCK
(Cost $143,284,939) 168,948,339
------------
PREFERRED STOCK -- 0.0%
ELECTRONICS
Teledyne, Inc. 28 417
------------
(Cost $0)
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 120
INDEX EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 0.6%
U.S. TREASURY BILLS
5.55% 04/06/95 $ 700*** $ 699,460
5.64% 04/06/95 100*** 99,922
5.70% 04/06/95 400*** 399,683
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,199,065) 1,199,065
------------
TEMPORARY INVESTMENTS -- 0.0%
Smith Barney Money Fund
(Cost $32,423) 32,423 32,423
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $171,249,964*) $196,913,781
=============
</TABLE>
- -------------
* Cost for Federal income tax purposes is $171,342,095. The gross unrealized
appreciation (depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $30,626,010
Gross unrealized depreciation (4,962,193)
-----------
$25,663,817
===========
</TABLE>
** Non-income producing security.
*** Principal amount of securities pledged as initial margin requirement of
$920,000 on 92 Standard & Poor's 500 Stock Index futures contracts expiring
June 1995.
See accompanying notes to financial statements.
21
<PAGE> 121
THE PNC(R) FUND
INDEX EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at value (Cost $171,249,964)...................................... $ 196,913,781
Dividends receivable.......................................................... 370,080
Interest receivable........................................................... 185
Capital shares sold receivable................................................ 15,152,108
Prepaid expenses.............................................................. 13,505
-------------
TOTAL ASSETS.......................................................... 212,449,659
-------------
LIABILITIES
Futures margin payable........................................................ 92,000
Capital shares redeemed payable............................................... 73,185
Accrued expenses payable...................................................... 68,820
-------------
TOTAL LIABILITIES..................................................... 234,005
-------------
NET ASSETS (Applicable to 13,608,238 Institutional shares, 4,274,896 Service
shares and 320,840 Series A Investor shares outstanding)...................... $ 212,215,654
=============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL
SHARE ($158,645,219 / 13,608,238)............................................. $11.66
=======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SERVICE SHARE
($49,834,484 / 4,274,896)..................................................... $11.66
=======
NET ASSET VALUE AND REDEMPTION PRICE PER SERIES A INVESTOR SHARE
($3,735,951 / 320,840)........................................................ $11.64
=======
MAXIMUM OFFERING PRICE PER SERIES A INVESTOR SHARE
($11.64 / .955)............................................................... $12.19
=======
</TABLE>
See accompanying notes to financial statements.
22
<PAGE> 122
THE PNC(R) FUND
SMALL CAP VALUE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS -- 93.6%
AEROSPACE -- 0.4%
Coltec Industries, Inc. 53,900** $ 929,775
------------
APPAREL -- 4.6%
CHIC by H.I.S. Inc. 211,000** 2,321,000
Cone Mills Corp. 170,000** 2,082,500
Forstmann & Company, Inc. 60,000** 270,000
Jones Apparel Group, Inc. 79,300** 2,141,100
Phillips-Van Heusen Corp. 140,000 2,205,000
Spring Industries, Inc. 36,000 1,350,000
------------
10,369,600
------------
AUTOMOTIVE -- 2.9%
A.O. Smith Corp. Class B 90,000 2,025,000
Masland Corp. 173,700 2,236,388
Stant Corp. 50,400 693,000
TBC Corp. 166,100** 1,681,763
------------
6,636,151
------------
BANKS -- 7.2%
Albank Financial Corp. 81,600 2,040,000
Amfed Financial, Inc. 82,170 1,910,453
Bankatlantic Bancorp, Inc. 81,000 1,255,500
Banknorth Group, Inc. 90,200 2,119,700
Commerce Bancorp, Inc. 135,100 2,296,700
Long Island Bancorp, Inc. 136,400 2,387,000
Mercantile Bankshares Corp. 46,950 1,038,769
Security Capital Corp. 8,200** 389,500
Southern National Corp. 73,805 1,466,874
Standard Federal Bank 51,300 1,378,688
------------
16,283,184
------------
BUSINESS SERVICES -- 1.3%
Computer Horizons Corp. 162,000** 2,875,500
------------
CHEMICALS -- 4.7%
Bush Boake Allen, Inc. 135,900** 3,669,300
IMC Global, Inc. 56,000 2,737,000
LSB Industries, Inc. 100,000 625,000
Vigoro Corp. 70,100 2,593,700
WD-40 Co. 25,600 1,011,200
------------
10,636,200
------------
CONSTRUCTION -- 2.0%
Beazer Homes USA, Inc. 170,400** 2,300,400
BMC West Corp. 161,850** 2,346,825
------------
4,647,225
------------
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
CONSUMER DURABLES -- 3.2%
Crown Crafts, Inc. 132,000 $ 2,244,000
General Housewares Corp. 17,400 232,725
Libbey, Inc. 146,700 2,732,287
North American Watch Corp. 85,700** 1,178,375
Oroamerica, Inc. 182,000** 910,000
------------
7,297,387
------------
COMPUTER & OFFICE EQUIPMENT -- 4.3%
AST Research, Inc. 170,000** 2,698,750
Conner Peripherals, Inc. 70,000** 665,000
DH Technology, Inc. 110,000** 2,282,500
GBC Technologies, Inc. 275,700** 1,860,975
Nu-Kote Holdings, Inc. 99,900** 2,322,675
------------
9,829,900
------------
COMPUTER SOFTWARE & SERVICES -- 0.6%
MDL Information Systems, Inc. 117,000** 1,374,750
------------
DRUGS & HEALTH CARE -- 0.4%
Herbalife International, Inc. 61,550 830,925
------------
ELECTRONICS -- 10.5%
Aetrium, Inc. 120,400** 1,685,600
Belden, Inc. 95,400 2,098,800
Cable Design Technologies 150,700** 2,260,500
Franklin Electronic
Publishers, Inc. 76,000** 2,137,500
Holophane Corp. 125,800** 2,295,850
Input/Output, Inc. 125,000** 3,296,874
Kemet Corp. 87,700** 3,299,713
Lattice Semiconductor Corp. 137,500** 3,377,343
Mark IV Industries, Inc. 106,040 2,173,820
Marshall Industries 45,200** 1,175,200
------------
23,801,200
------------
FOOD & AGRICULTURE -- 2.1%
Daka International, Inc. 184,400** 3,457,500
Sanderson Farms, Inc. 121,500 1,427,625
------------
4,885,125
------------
INSURANCE -- 14.4%
Acordia, Inc. 57,500 1,868,750
Baldwin & Lyons, Inc. Class B 99,900 1,623,375
Commerce Group, Inc. 134,900 2,259,574
First Colony Corp. 75,000 1,696,875
Harleysville Group, Inc. 75,195 1,832,878
Life USA Holding, Inc. 226,400** 2,264,000
Merchants Group, Inc. 25,600 371,200
National Re Corp. 72,000 2,106,000
Partnerre Holdings, LTD. 89,500 1,901,875
</TABLE>
See accompanying notes to financial statements.
23
<PAGE> 123
SMALL CAP VALUE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
INSURANCE (CONTINUED)
Paul Revere Corp. 70,000 $ 1,137,500
Penncorp Financial Group,
Inc. 137,900 2,430,487
Physician Corporation of
America 107,600** 2,421,000
Pxre Corp. 29,200 704,450
State Auto Financial Corp. 138,800 2,324,900
TIG Holdings, Inc. 142,000 3,195,000
United Fire & Casualty Co. 46,200 1,316,700
United Wisconsin Services,
Inc. 60,800 2,394,000
W.R. Berkly Co. 24,500 897,313
------------
32,745,877
------------
MACHINERY & HEAVY EQUIPMENT -- 3.1%
BW IP, Inc. 135,400 2,234,100
CMI Corp. Class A 337,000** 2,232,625
DT Industries, Inc. 62,500 750,000
FSI International, Inc. 43,400** 1,752,275
------------
6,969,000
------------
MANUFACTURING -- 9.5%
Alamo Group, Inc. 105,000 1,811,250
Amtrol, Inc. 65,000 1,153,750
Griffon Corp. 30,550** 259,675
Harmon Industries, Inc. 151,300 2,118,200
ILC Technology, Inc. 20,700** 207,000
Johnstown America Industries,
Inc. 50,400** 680,400
Lydall, Inc. 95,000** 3,206,250
Pentair, Inc. 76,700 3,240,575
Plantronics, Inc. 130,300 3,599,537
US Can Corp. 147,100** 3,125,875
Velcro Industries N.V. 35,900 2,145,025
------------
21,547,537
------------
MEDICAL INSTRUMENTS & SUPPLIES -- 1.1%
Beckman Instruments, Inc. 81,800 2,423,325
------------
MEDICAL & MEDICAL SERVICES -- 0.7%
North American Biology, Inc. 180,000 1,575,000
------------
METALS & MINING -- 2.0%
Mueller Industries, Inc. 65,000** 2,169,375
Wolverine Tube, Inc. 100,000** 2,500,000
------------
4,669,375
------------
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
PAPER & FOREST PRODUCTS -- 3.2%
Caraustar Industries, Inc. 159,000 $ 2,703,000
Chesapeake Corp. 85,100 2,723,200
CSS Industries, Inc. 100,800** 1,789,200
------------
7,215,400
------------
RETAIL MERCHANDISING -- 9.8%
Bombay Company, Inc. 231,000** 2,107,874
Bradlees, Inc. 94,600 1,052,425
Fingerhut Companies, Inc. 148,700 1,765,813
Fred's, Inc. 164,500 1,603,875
J. Baker, Inc. 136,200 2,077,050
Lillian Vernon Corp. 87,600 1,806,750
Little Switzerland, Inc. 125,300** 626,500
Nine West Group, Inc. 86,000** 2,537,000
Roberds, Inc. 114,800** 1,119,300
Stanley Furniture Co., Inc. 155,900** 1,110,788
Stop & Shop Companies, Inc. 55,600** 1,334,400
Value City Department Stores,
Inc. 139,600** 1,134,250
Vons Companies Inc. 114,000** 2,208,750
Waban, Inc. 90,000** 1,777,500
------------
22,262,275
------------
STEEL -- 1.4%
Rouge Steel Co. 110,000 2,695,000
Steel of West Virginia, Inc. 38,300** 445,238
------------
3,140,238
------------
TOBACCO -- 1.0%
Universal Corp. 105,300 2,198,138
------------
TRAVEL & RECREATION -- 2.5%
Cinergi Pictures
Entertainment, Inc. 96,600** 893,550
King World Productions, Inc. 62,700** 2,468,813
Royal Caribbean Cruises LTD. 86,400 2,257,200
------------
5,619,563
------------
TRUCKING & FREIGHT -- 0.4%
Arkansas Best Corp. 70,000 743,750
Arrow Transportation Co. 41,900** 146,650
------------
890,400
------------
WASTE MANAGEMENT -- 0.3%
Dames & Moore, Inc. 64,800 777,600
------------
TOTAL COMMON STOCKS
(Cost $189,619,784) 212,430,650
------------
</TABLE>
See accompanying notes to financial statements.
24
<PAGE> 124
SMALL CAP VALUE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 2.6%
U.S. TREASURY BILLS
5.707% 04/06/95 $ 6,000 $ 5,995,317
------------
(Cost $5,995,317)
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES
---------
<S> <C> <C>
TEMPORARY INVESTMENTS -- 4.2%
Smith Barney Money Market
Fund
(Cost $9,452,504) 9,452,504 9,452,504
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $205,067,605*) 100.4% 227,878,471
------ ------------
LIABILITIES IN EXCESS OF OTHER
ASSETS (.4%) (845,979)
------ ------------
NET ASSETS (Applicable to
12,121,979 Institutional
shares, 3,681,922 Service
shares, 1,431,522 Series A
Investor shares and 66,812
Series B Investor shares
outstanding) 100.0% $227,032,492
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
AND SERVICE SHARE
($207,393,746 / 15,803,901) $13.12
======
<CAPTION>
VALUE
------------
<S> <C>
NET ASSET VALUE AND REDEMPTION
PRICE PER SERIES A
INVESTOR SHARE
($18,765,098 / 1,431,522) $13.11
======
MAXIMUM OFFERING PRICE PER
SERIES A INVESTOR SHARE
($13.11 / .955) $13.73
======
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE (SUBJECT
TO CONTINGENT DEFERRED SALES
CHARGE) PER SERIES B INVESTOR
SHARE
($873,648 / 66,812) $13.08
======
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross
unrealized appreciation (depreciation) on a tax basis is
as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 37,661,754
Gross unrealized depreciation (14,850,888)
------------
$ 22,810,866
=============
</TABLE>
** Non-income producing security.
See accompanying notes to financial statements.
25
<PAGE> 125
THE PNC(R) FUND
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
---------- ------------
<S> <C> <C>
COMMON STOCKS -- 93.7%
ARGENTINA -- 0.3%
Cia Interamericana de
Automovil 256,607 $ 1,321,529
------------
AUSTRALIA -- 1.4%
Australia & New Zealand
Banking Group 695,000 2,448,711
Broken Hill Proprietary Co. 223,000 2,920,653
------------
5,369,364
------------
BELGIUM -- 0.5%
KredietBank NV 8,621 1,922,472
------------
FRANCE -- 11.3%
Alcatel Cable 52,000 3,755,526
Banq National de Paris 62,900 3,191,668
BP France 34,000** 917,298
Cetelem Group 21,000 4,545,605
Ecco SA 30,375 4,009,235
L'Oreal 19,000 5,031,441
Lafarge-Coppee SA 23,000 1,738,425
Marine Wendel 1,890 141,206
PSA Peugeot Citroen 30,600** 4,292,954
Roussel Uclaf 33,725 5,004,332
Societe Nationale Elf
Aquitaine 59,800 4,668,831
Television Francaise 50,200 4,500,654
UAF 28,850 2,993,670
------------
44,790,845
------------
GERMANY -- 5.1%
Deutsche Bank AG 8,250 3,881,968
Gea AG Non Voting PFD 13,225 4,325,578
Henkel KGAA Non Voting PFD 10,000 3,722,022
Spar Handels AG Non Voting
PFD 23,700 5,835,162
Strabag Bau AG 7,825 2,316,426
------------
20,081,156
------------
HONG KONG -- 7.6%
Cathay Pacific Airways Ltd. 843,000 1,302,928
Cheung Kong 1,118,000 4,873,003
Citic Pacific 1,384,000 3,418,963
HSBC Holdings PLC 489,750 5,526,687
Hutchison Whampoa 1,388,000 6,121,655
South China Morning Post 6,990,000 3,910,104
Sun Hung Kai Properties 710,000 4,844,019
------------
29,997,359
------------
<CAPTION>
NUMBER
OF SHARES VALUE
---------- ------------
<S> <C> <C>
ITALY -- 1.7%
Rinascente 682,000 $ 3,370,237
Telecom Italia SPA 1,460,000 3,377,719
------------
6,747,956
------------
JAPAN -- 31.4%
Amada Co. Ltd. 319,000 3,382,832
Daiwa House Industry 255,000 4,169,257
East Japan Railway Co. 760 3,719,056
Fukuda Corp. 154,000 1,622,453
Hitachi Ltd. 379,000 3,927,461
Horiba 227,000 3,031,894
Ito-Yokado Co. Ltd. 71,000 3,515,256
Joyo Bank 410,000 3,498,100
Kamigumi 360,000 3,461,140
Keyence Corp. 32,000 3,363,961
Kinden Corp. 225,500 4,647,611
Makita Corp. 129,000 1,901,209
Marui Co. Ltd. 219,000 3,454,577
Matsushita Electric
Industrial Co. 243,000 3,917,098
Mitsubishi Chemical Corp. 800,200 4,413,308
Mitsubishi Heavy Industries
Ltd. 498,000 3,572,297
Mitsubishi Materials Corp. 685,000 3,312,608
Mitsubishi Motors 587,000 5,346,195
Mos Food Services 117,700 3,374,473
Nintendo Corp. Ltd. 68,000 4,141,854
Nippon Sanso 80,000 396,085
Nissan Motor Co. Ltd. 1,000 7,622
Ricoh Co. 397,000 3,720,875
Rinnai Corp. 101,700 2,541,036
Sankyo Co. Ltd. 255,200 5,876,799
Sanyo Shinpan Finance Co. 41,000 3,219,574
Shizouka Bank 269,000 3,252,159
Sumitomo Marine & Fire
Insurance Co. 471,000 4,007,703
Suzuki Motor Co. Ltd. 386,000 4,128,889
TDK Corp. 82,000 3,823,834
Teijin Ltd. 664,000 3,516,868
Toda Construction Co. 416,000 4,258,192
Tokio Marine & Fire
Insurance Co. 343,000 3,890,098
Tokushu Paper Mfg. Co. Ltd. 303,500 3,145,078
Yamato Kogyo Co. Ltd. 346,000 3,581,508
Yamazaki Baking Co. Ltd. 182,000 3,457,686
------------
124,596,646
------------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE> 126
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MALAYSIA -- 4.9%
Edaran Otomobil
Nasional BHD 697,000 $ 5,096,640
Magnum Corp. BHD 2,736,000 5,212,458
Malaysian International
Shipping Corp. Ltd
(Foreign) 1,621,000 4,677,194
Public Bank BHD 670,100 1,170,689
The New Straits Times Press
BHD 1,203,000 3,257,134
------------
19,414,115
------------
NETHERLANDS -- 5.1%
Getronics NV 163,716 6,495,828
Grolsch NV 135,000 4,633,548
Hollandsche Beton Groep NV 27,500 4,364,516
Koninklijke Ahold NV 135,000 4,633,548
------------
20,127,440
------------
NEW ZEALAND -- 1.0%
Air New Zealand 'B' Ltd 1,188,000 4,037,062
------------
PORTUGAL -- 0.7%
Espirito Santo Financial
Holdings SA -ADR 283,350 2,939,756
------------
SINGAPORE -- 0.7%
Natsteel Ltd. 1,350,000 2,822,466
United Overseas Bank
(Foreign) 1,990 19,745
------------
2,842,211
------------
SPAIN -- 2.7%
Corporacion Mapfre Cia
Internacional 73,675 2,943,537
Repsol SA ADR 120,000 3,480,000
Sevillana de Electricidad 404,800 1,820,252
Telefonica de Espana ADR 69,000 2,587,500
------------
10,831,289
------------
SWEDEN -- 3.5%
Atlas Copco AB 'B' Free 443,000 5,344,657
Svenska Cellulosa AB 'B'
Free 226,000 3,584,432
Svenska Kullagerfabriken AB
'B' Free 304,000 5,068,796
------------
13,997,885
------------
<CAPTION>
NUMBER
OF SHARES VALUE
---------- ------------
<S> <C> <C>
SWITZERLAND -- 3.9%
Hero AG Bearer 5,900 $ 3,250,111
Merkur Holding AG Regd 12,380 3,508,858
Sandoz AG SF20 Regd 7,105 4,608,307
Schweizerischer Bankverein
Bearer 12,700 4,208,885
------------
15,576,161
------------
TAIWAN -- 0.0%
President Enterprises GDR 69** 1,346
------------
UNITED KINGDOM -- 11.9%
Albert Fisher 7,140,000 4,745,315
Bass PLC 392,000 3,488,522
Bat Industries 402,901 2,867,120
British Gas 635,000 2,949,045
British Gas PLC ADR 6,900 322,575
Cable & Wireless PLC 590,000 3,710,793
General Electric PLC 828,000 3,972,876
Hanson PLC 1,000,307 3,761,875
Laporte PLC 269,000 2,952,052
Powerscreen International 1,020,500 4,135,576
Prudential Corp. PLC 535,000 2,688,429
Scapa Group 645,000 2,164,278
Sedgwick Group 685,000 1,665,578
Smithkline Beecham ADR 110,000 4,125,000
Tomkins PLC 1,050,000 3,999,818
------------
47,548,852
------------
TOTAL COMMON STOCKS
(Cost $361,603,879) 372,143,444
------------
WARRANTS -- 0.0%
Ciba-Geigy AG Warrants
06/06/95
(Cost $1,096) 400** 569
------------
<CAPTION>
CURRENCY U.S. DOLLAR
VALUE VALUE
---------- ------------
<S> <C> <C>
INVESTMENTS IN CURRENCY -- 4.8%
Australia (Dollar) 45,471 33,307
Belgium (Franc) 1,542,260 54,161
France (Franc) 2,031,263 421,555
Germany (Deutsche Mark) 4,924,857 3,555,853
Hong Kong (Dollar) 8,659,816 1,120,040
Italy (Lira) 60,218,171 35,092
Japan (Yen) 62,883,936 724,052
Malaysia (Ringgit) 1,526,044 603,179
Netherlands (Guilder) 330,331 213,116
</TABLE>
See accompanying notes to financial statements.
27
<PAGE> 127
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CURRENCY U.S. DOLLAR
VALUE VALUE
---------- ------------
<S> <C> <C>
INVESTMENTS IN CURRENCY (CONTINUED)
New Zealand (Dollar) 6,387,579 $ 4,174,283
Norway (Krone) 1 0
Singapore (Dollar) 439,534 311,505
Spain (Peseta) 88,116,753 1,473,692
Sweden (Krona) 158,707 21,514
Switzerland (Franc) 7,184,753 6,383,613
United Kingdom (Sterling) 25,814 41,845
------------
TOTAL INVESTMENTS IN CURRENCY
(Cost $18,944,008) 19,166,807
------------
TOTAL INVESTMENTS IN SECURITIES
(Cost $380,548,983*) 98.5% 391,310,820
OTHER ASSETS IN EXCESS OF
LIABILITIES 1.5% 5,954,881
---- ------------
NET ASSETS (Applicable to
23,866,225 Institutional
shares, 6,779,447 Service
shares, 1,268,582 Series A
Investor shares and 65,120
Series B Investor shares
outstanding) 100.0% $397,265,701
====== ============
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER INSTITUTIONAL SHARE
($296,726,858 / 23,866,225) $12.43
======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SERVICE SHARE
($84,040,736 / 6,779,447) $12.40
======
<CAPTION>
VALUE
------------
<S> <C>
NET ASSET VALUE AND REDEMPTION
PRICE PER SERIES A INVESTOR
SHARE
($15,694,661 / 1,268,582) $12.37
======
MAXIMUM OFFERING PRICE PER
SERIES A INVESTOR SHARE
($12.37 / .955) $12.95
======
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PRICE (SUBJECT TO CONTINGENT
DEFERRED SALES CHARGE) PER
SERIES B INVESTOR SHARE
($803,446 / 65,120) $12.34
======
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross
unrealized appreciation (depreciation) on a tax basis is
as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 26,410,012
Gross unrealized depreciation (15,648,175)
------------
$ 10,761,837
=============
</TABLE>
** Non-income producing security.
See accompanying notes to financial statements.
28
<PAGE> 128
THE PNC(R) FUND
INTERNATIONAL EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- -----------
<S> <C> <C>
AGENCY OBLIGATIONS -- 17.3%
FEDERAL HOME LOAN BANK DISCOUNT
NOTES
6.25% 04/03/95 $ 3,110 $ 3,108,920
-----------
(Cost $3,108,920)
</TABLE>
<TABLE>
<CAPTION>
NUMBER
OF SHARES
----------
<S> <C> <C>
COMMON STOCKS -- 85.9%
ARGENTINA -- 10.0%
Banco Frances del Rio Plata 41,850 252,355
Central Costanera SA -- B 111,000 327,450
CIA Interamericana de
Automovil 68,500 352,775
CIA Naviera Perez Companc SA 96,996 360,825
Transportadora de Gas del Sur
SA ADR 52,200 502,425
-----------
1,795,830
-----------
BRAZIL -- 2.0%
Iochpe Maxion SA ADR 5,000 60,500
Iochpe Maxion SA Preferred 600,000 290,323
-----------
350,823
-----------
CHILE -- 5.2%
Antofagasta Holding 80,000 389,040
Compania de Telefonos de Chile
ADR 6,000 400,500
Embotelladora Andina SA ADR 5,200 136,500
-----------
926,040
-----------
CHINA -- 3.3%
Hua Xin Cement Co.
Ltd -- B 1,300,000 330,200
Shandong Huaneng
Power ADR 31,500 283,500
-----------
613,700
-----------
HONG KONG -- 6.7%
Citic Pacific 121,000 298,912
Guangzhou Shipyard
International Co. 750,000 356,487
Qingling Automobiles Co. 900,000 195,559
Shanghai Haixing Shipping
Co. Ltd. 1,832,000 345,942
-----------
1,196,900
-----------
<CAPTION>
NUMBER
OF SHARES VALUE
---------- -----------
<S> <C> <C>
HUNGARY -- 2.1%
Egis Gyogyszergyar 8,400 $ 153,867
Pannonplast Muanyagipari Rt 17,008 152,887
Pick Szeged Szalamigyar Es
Husuzem Rt 1,457 73,208
-----------
379,962
-----------
INDONESIA -- 6.4%
PT Sinar Mas Agro Resources
Agricultural Production and 360,000 390,255
PT Suparma 487,000 299,341
Shiriram Industrial
Enterprises, Ltd. GDR (Reg.
144A) 57,000 448,875
Shiriram Industrial
Enterprises, Ltd. Warrants
(Reg. 144A) 14,000 5,250
-----------
1,143,721
-----------
ISRAEL -- 1.0%
PEC Israel Economic
Corp. ADR 6,700 175,875
-----------
JAPAN -- 2.0%
Samsung Electronics GDR 8,100 360,450
-----------
KOREA -- 5.4%
Hansol Paper GDR 12,331 286,688
Hyundai Motor Co.
Ltd. GDR 17,000 331,500
Korea Electric Power Corp. 10,000 348,446
-----------
966,634
-----------
MALAYSIA -- 13.6%
Bangkok Steel Industry Co. 193,200 257,417
Edaran Otomobil Nasional
Berhard 50,000 365,613
Kian Joo Can Factory Berhard 100,000 365,613
Magnum Corp. Berhard 145,000 276,245
Malaysian International
Shipping Corp. 38,666 97,810
Malaysian International Ship-
ping Corp. (Foreign Shares) 84,000 242,372
NYLEX (Malaysia) Berhard 155,000 367,589
Public Bank 100,000 174,704
The New Straits Times Press 111,000 300,534
-----------
2,447,897
-----------
</TABLE>
See accompanying notes to financial statements.
29
<PAGE> 129
INTERNATIONAL EMERGING MARKETS PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MEXICO -- 8.0%
Cementos de Mexico SA -- CPO 54,000 $ 111,195
Cementos de Mexico SA -- CPO
ADR 48,800 202,032
Empaques Ponderosa SA -- B 1,806 2,917
Fomento Economico Mexicano
SA -- B 95,400 160,599
Fotoluz Corporacion SA -- B 250,000 103,550
Grupo Financiero Banamex
Accival -- C 133,700 154,269
Grupo Financiero Banorte -- B 60,000 57,692
Grupo Tribasa SA ADR 3,800 21,850
Telfonos de Mexico -- Class L
ADR 11,000 313,500
Vitro Sociedad Anonima ADR 36,000 310,500
-----------
1,438,104
-----------
PORTUGAL -- 1.5%
Espirito Santo Financial
Holdings ADR 26,200 271,825
-----------
TAIWAN -- 2.8%
China Steel GDR 10,000 207,500
Taiwan Fund, Inc. 14,000 295,750
-----------
503,250
-----------
THAILAND -- 9.2%
Bangkok Bank 35,500 314,849
Bumrungrad Hospital 105,000 226,404
Post Publishing Co., Ltd. 63,000 281,937
Thai Modern Plastic Industry 128,000 460,862
Thai Stanley Electric
Co., Ltd. 90,000 366,151
-----------
1,650,203
-----------
TURKEY -- 3.1%
Aksigorta A.S. 1,500,000 393,795
Cukurova Elektrik A.S. 632,000 154,606
-----------
548,401
-----------
UNITED KINGDOM -- 3.6%
Central European Growth Fund
PLC 1,115,000 641,632
-----------
TOTAL COMMON STOCKS
(Cost $18,344,865) 15,411,247
-----------
<CAPTION>
NUMBER
OF SHARES VALUE
---------- -----------
<S> <C> <C>
CONVERTIBLE BONDS -- 2.9%
Far Eastern Department Stores
3.00% 07/06/01 200 $ 200,000
Yang Ming Marine Transport, Inc.
2.00% 10/06/99 290 313,200
-----------
TOTAL CONVERTIBLE BONDS
(Cost $494,958) 513,200
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $21,948,743*) 106.1% 19,033,367
LIABILITIES IN EXCESS OF
OTHER ASSETS (Including
$1,311,377 of investment
purchases payable) (6.1%) (1,099,997)
------ -----------
NET ASSETS(Applicable to
1,152,529 Institutional
shares, 803,215 Service shares
and 314,145 Series A Investor
shares outstanding) 100.0% $17,933,370
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL SHARE
($9,117,124 / 1,152,529) $7.91
=====
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SERVICE SHARE
($6,341,606 / 803,215) $7.90
=====
NET ASSET VALUE AND
REDEMPTION PRICE PER SERIES A
INVESTOR SHARE
($2,474,640 / 314,145) $7.88
=====
MAXIMUM OFFERING PRICE PER
SERIES A INVESTOR SHARE
($7.88 / .955) $8.25
=====
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross unrealized appreciation
(depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 397,361
Gross unrealized depreciation (3,312,737)
-----------
$(2,915,376)
===========
</TABLE>
See accompanying notes to financial statements.
30
<PAGE> 130
THE PNC(R) FUND
BALANCED PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C>
AGENCY OBLIGATIONS -- 17.7%
FEDERAL FARM CREDIT BANK
BONDS -- 1.2%
6.70% 09/09/97 $ 2,000 $ 1,977,460
------------
FEDERAL HOME LOAN BANK
BONDS -- 0.9%
8.46% 12/20/99 1,500 1,517,220
------------
FEDERAL HOME LOAN BANK
DISCOUNT NOTES -- 7.6%
6.25% 04/03/95 12,335 12,330,717
------------
FEDERAL HOME LOAN MORTGAGE
CORPORATION -- 1.6%
8.53% 02/02/05 2,500 2,590,275
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 1.8%
8.25% 10/25/96 750 756,996
8.00% 02/25/02 1,240 1,248,830
6.40% 03/25/03 1,000 924,660
------------
2,930,486
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 3.5%
8.00% 12/15/06 2,840 2,815,057
7.50% 06/15/07 2,906 2,808,976
------------
5,624,033
------------
TENNESSEE VALLEY AUTHORITY -- 1.1%
6.125% 07/15/03 2,000 1,820,000
------------
TOTAL AGENCY OBLIGATIONS
(Cost $28,962,358) 28,790,191
------------
ASSET BACKED SECURITIES -- 1.2%
Merrill Lynch Asset Backed Corp.
5.50% 07/15/95 715 708,121
Nissan Auto Receivables
Grantor Trust
6.45% 03/15/96 1,201 1,193,005
------------
TOTAL ASSET BACKED SECURITIES
(Cost $1,911,091) 1,901,126
------------
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS -- 60.5%
AEROSPACE -- 2.4%
Boeing Co. 40,100 $ 2,160,387
United Technologies Corp. 24,500 1,693,563
------------
3,853,950
------------
APPAREL -- 0.8%
Cintas Corp. 34,200 1,282,500
------------
AUTOMOTIVE -- 1.8%
Chrysler Corp. 18,500 774,687
Ford Motor Co. 39,000 1,053,000
General Motors Corp. 23,500 1,039,875
------------
2,867,562
------------
BANKS -- 3.4%
Comerica, Inc. 45,800 1,259,500
First Chicago Corp. 26,600 1,333,325
Meridian Bancorp, Inc. 44,000 1,347,500
NationsBank Corp. 30,200 1,532,650
------------
5,472,975
------------
BEVERAGES -- 0.9%
Coca-Cola Co. 24,500 1,384,250
------------
CHEMICALS -- 4.8%
Dow Chemical Co. 27,900 2,036,700
E.I. Dupont de Nemours & Co. 32,900 1,990,450
I.M.C. Global, Inc. 26,000 1,270,750
Lubrizol Corp. 36,500 1,286,625
Monsanto Co. 15,800 1,267,950
------------
7,852,475
------------
COMPUTER & OFFICE EQUIPMENT -- 3.3%
Compaq Computer Corp. 25,400 876,300
Intel Corp. 22,000 1,867,250
Pitney Bowes, Inc. 26,100 939,600
Xerox Corp. 13,800 1,619,775
------------
5,302,925
------------
COMPUTER SOFTWARE & SERVICES -- 4.1%
Computer Sciences Corp. 29,300** 1,446,687
First Data Corp. 19,500 1,011,563
Microsoft Corp. 18,600** 1,322,925
Stratus Computer, Inc. 41,300** 1,290,625
Sun Microsystems, Inc. 44,000** 1,529,000
------------
6,600,800
------------
</TABLE>
See accompanying notes to financial statements.
31
<PAGE> 131
BALANCED PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CONSTRUCTION -- 1.4%
Fluor Corp. 27,500 $ 1,326,875
Foster Wheeler Corp. 30,300 1,026,412
------------
2,353,287
------------
ELECTRONICS -- 4.5%
A.M.P. Inc. 27,000 972,000
Emerson Electric Co. 21,400 1,423,100
General Electric Co. 43,100 2,332,787
General Instruments Corp. 34,500** 1,198,875
Motorola, Inc. 25,000 1,365,625
------------
7,292,387
------------
ENERGY & UTILITIES -- 1.6%
Entergy Corp. 49,800 1,039,575
PECO Energy Co. 64,300 1,615,538
------------
2,655,113
------------
FINANCE -- 1.8%
Dean Witter Discover & Co. 44,300 1,805,225
Federal National Mortgage
Association 13,800 1,122,975
------------
2,928,200
------------
FOOD & AGRICULTURE -- 0.5%
H.J. Heinz Co. 19,600 754,600
------------
INSURANCE -- 3.2%
American International Group,
Inc. 22,450 2,340,412
Chubb Corp. 15,700 1,240,300
General Re Corp. 11,700 1,544,400
------------
5,125,112
------------
MANUFACTURING -- 1.3%
Allied-Signal, Inc. 20,400 800,700
Minnesota Mining &
Manufacturing Co. 23,300 1,354,313
------------
2,155,013
------------
MEDICAL INSTRUMENTS & SUPPLIES -- 1.0%
Beckman Instruments, Inc. 52,500 1,555,312
------------
METALS & MINING -- 0.8%
Phelps Dodge Corp. 21,600 1,228,500
------------
OIL DOMESTIC -- 1.6%
Tenneco, Inc. 28,600 1,347,775
Unocal Corp. 43,000 1,236,250
------------
2,584,025
------------
<CAPTION>
NUMBER
OF SHARES VALUE
--------- ------------
<S> <C> <C>
OIL INTERNATIONAL -- 5.4%
Amoco Corp. 32,300 $ 2,055,087
Chevron Corp. 19,800 950,400
Elf Aquitaine ADR 39,500 1,530,625
Exxon Corp. 18,100 1,208,175
Mobil Corp. 12,700 1,176,337
Royal Dutch Petroleum Co. 15,800 1,896,000
------------
8,816,624
------------
PAPER & FOREST PRODUCTS -- 2.2%
International Paper Co. 20,500 1,540,063
Scott Paper Co. 23,100 2,064,563
------------
3,604,626
------------
PHARMACEUTICAL PREPARATIONS -- 4.9%
American Home Products Corp. 29,300 2,087,625
Bristol-Myers Squibb Co. 18,500 1,165,500
Eli Lilly & Co. 25,400 1,857,375
Johnson & Johnson 19,800 1,178,100
Merck & Co., Inc. 38,600 1,645,325
------------
7,933,925
------------
RAILROADS & SHIPPING -- 1.2%
Conrail Corp. 17,700 993,412
Norfolk Southern Corp. 15,700 1,049,938
------------
2,043,350
------------
RETAIL MERCHANDISING -- 3.1%
J.C. Penney Co., Inc. 27,400 1,229,575
K Mart Corp. 95,000 1,306,250
Sears Roebuck & Co. 23,600 1,259,650
Wal-Mart Stores, Inc. 48,000 1,224,000
------------
5,019,475
------------
TELECOMMUNICATIONS -- 2.4%
AT&T Corp. 34,100 1,764,675
NYNEX Corp. 28,100 1,113,463
SBC Communications, Inc. 25,400 1,069,975
------------
3,948,113
------------
TOBACCO PRODUCTS -- 0.7%
UST, Inc. 36,100 1,146,175
------------
TRAVEL & RECREATION -- 1.4%
La Quinta Motor Inns, Inc. 34,500 935,813
Walt Disney Co. 25,200 1,345,050
------------
2,280,863
------------
TOTAL COMMON STOCKS
(Cost $89,153,193) 98,042,137
------------
</TABLE>
See accompanying notes to financial statements.
32
<PAGE> 132
BALANCED PORTFOLIO
STATEMENT OF NET ASSETS (Continued)
MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
--------- --------- ------------
<S> <C> <C>
CORPORATE BONDS -- 8.1%
BANKS -- 1.2%
NationsBank Corp.
7.50% 02/15/97 $ 2,000 $ 2,010,000
------------
CONGLOMERATES -- 1.3%
ITT Corp.
10.125% 04/05/99 2,000 2,155,000
------------
ENERGY & UTILITIES -- 1.9%
Idaho Power Co.
8.75% 03/15/27 3,000 3,060,000
------------
PAPER & FOREST PRODUCTS -- 0.6%
Weyerhaeuser Co.
7.25% 07/01/13 1,000 926,250
------------
PHARMACEUTICAL PREPARATIONS -- 1.6%
American Home Products Corp.
7.70% 02/15/00 2,500 2,521,875
------------
TRUCKING & FREIGHT -- 1.5%
Ryder Systems, Inc.
7.55% 09/15/99 2,500 2,496,875
------------
TOTAL CORPORATE BONDS
(Cost $13,190,641) 13,170,000
------------
MEDIUM TERM NOTES -- 1.5%
FINANCE
General Motors Acceptance Corp.
8.625% 06/15/99 2,400 2,469,000
------------
(Cost $2,478,737)
U.S. TREASURY OBLIGATIONS -- 10.9%
U.S. TREASURY BONDS -- 1.6%
8.125% 08/15/19 2,500 2,650,025
------------
U.S. TREASURY NOTES -- 9.3%
7.625% 05/31/96 500 505,845
5.125% 03/31/98 1,000 952,440
8.25% 07/15/98 2,500 2,593,525
7.125% 09/30/99 5,000 5,012,250
7.25% 08/15/04 6,000 6,007,259
------------
15,071,319
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $17,540,426) 17,721,344
------------
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $153,236,446*) 99.9% $162,093,798
OTHER ASSETS IN EXCESS OF
LIABILITIES 0.1% 154,975
----- ------------
NET ASSETS (Applicable to
1,826,709 Institutional shares,
6,101,013 Service shares,
5,074,659 Series A Investor
shares, and 145,053 Series B
Investor shares outstanding). 100.0% $162,248,773
======= ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
INSTITUTIONAL AND SERVICE SHARE
($97,832,065 / 7,927,722) $12.34
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SERIES A INVESTOR
SHARE
($62,628,492 / 5,074,659) $12.34
======
MAXIMUM OFFERING PRICE PER SERIES
A INVESTOR SHARE
($12.34 / .955) $12.92
======
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE (SUBJECT
TO CONTINGENT DEFERRED SALES
CHARGE) PER SERIES B INVESTOR
SHARE
($1,788,216 / 145,053) $12.33
======
</TABLE>
- -------------
* Also cost for Federal income tax purposes. The gross
unrealized appreciation (depreciation) on a tax basis
is as follows:
<TABLE>
<S> <C>
Gross unrealized appreciation $10,926,093
Gross unrealized depreciation (2,068,741)
-----------
$ 8,857,352
===========
</TABLE>
** Non-income producing security.
See accompanying notes to financial statements.
33
<PAGE> 133
THE PNC(R) FUND
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
SMALL CAP
VALUE GROWTH GROWTH CORE
EQUITY EQUITY EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment income:
Interest............................................ $ 287,963 $ 586,644 $ 472,519 $ 559,298
Dividends........................................... 10,499,938 1,207,746 80,651 1,413,564
----------- ----------- ----------- -----------
Total investment income........................... 10,787,901 1,794,390 553,170 1,972,862
----------- ----------- ----------- -----------
Expenses:
Investment advisory fee............................. 1,759,164 469,375 289,259 341,607
Administration fee.................................. 625,594 170,682 105,185 124,221
Custodian fee....................................... 54,399 23,033 23,150 19,632
Transfer agent fee.................................. 14,714 12,282 12,001 11,878
Service fees........................................ 137,771 51,412 31,520 65,891
Distribution fees................................... 22,847 12,125 4,524 2,256
Legal and audit..................................... 33,374 8,497 5,123 6,091
Printing............................................ 21,667 10,008 3,326 3,958
Registration fees and expenses...................... 12,465 17,106 15,944 14,000
Organization........................................ 7,666 38 2,204 2,199
Trustees' fees and officer's salary................. 5,320 1,326 802 949
Other............................................... 10,481 8,462 2,895 3,162
----------- ----------- ----------- -----------
2,705,462 784,346 495,933 595,844
Less fees voluntarily waived........................ (465,831) (166,241) (75,964) (123,980)
----------- ----------- ----------- -----------
Total expenses.................................... 2,239,631 618,105 419,969 471,864
----------- ----------- ----------- -----------
Net investment income................................. 8,548,270 1,176,285 133,201 1,500,998
----------- ----------- ----------- -----------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) from investment
transactions...................................... 15,118,074 1,227,325 (1,407,028) (411,306)
Change in unrealized appreciation
of investments.................................... 24,669,433 13,986,348 16,205,644 10,164,849
----------- ----------- ----------- -----------
Net gain on investments............................. 39,787,507 15,213,673 14,798,616 9,753,543
----------- ----------- ----------- -----------
Net increase in net assets resulting
from operations................................... $48,335,777 $16,389,958 $14,931,817 $11,254,541
========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
34
<PAGE> 134
THE PNC(R) FUND
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX MONTHS ENDED MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
INDEX SMALL CAP INTERNATIONAL
EQUITY EQUITY EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- -------------
<S> <C> <C> <C>
Investment Income:
Interest........................................................ $ 507,256 $ 301,601 $ 343,443
Dividends....................................................... 2,312,036 1,072,454 2,913,648
Foreign taxes withheld.......................................... -- -- (295,693)
----------- ----------- -------------
Total investment income....................................... 2,819,292 1,374,055 2,961,398
----------- ----------- -------------
Expenses:
Investment advisory fee......................................... 180,359 603,856 1,393,899
Administration fee.............................................. 180,359 219,584 371,706
Custodian fee................................................... 25,647 24,080 241,609
Transfer agent fee.............................................. 12,029 16,292 15,453
Service fees.................................................... 37,477 56,971 97,478
Distribution fees............................................... 5,896 37,738 31,974
Legal and audit................................................. 9,138 11,388 20,344
Printing........................................................ 5,939 7,400 15,230
Registration fees and expenses.................................. 12,465 13,557 14,500
Organization.................................................... 4,428 2,126 1,289
Trustees' fees and officer's salary............................. 1,445 1,810 3,789
Other........................................................... 27,435 5,614 34,589
----------- ----------- -------------
502,617 1,000,416 2,241,860
Less fees voluntarily waived...................................... (323,974) (104,226) (346,795)
----------- ----------- -------------
Total expenses.................................................. 178,643 896,190 1,895,065
----------- ----------- -------------
Net investment income............................................. 2,640,649 477,865 1,066,333
----------- ----------- -------------
Realized and unrealized gain (loss) on investments and
foreign currency transactions:
Net realized gain (loss) from:
Investment transactions....................................... 1,338,666 5,067,600 4,749,359
Futures contracts............................................. 1,016,184 -- --
Foreign currency related transactions......................... -- -- 495,653
----------- ----------- -------------
2,354,850 5,067,600 5,245,012
----------- ----------- -------------
Change in unrealized appreciation (depreciation) from:
Investments..................................................... 11,250,960 (3,006,027) (17,740,992)
Futures contracts............................................... 781,600 -- --
Foreign currency related transactions........................... -- -- (6,149,678)
----------- ----------- -------------
12,032,560 (3,006,027) (23,890,670)
----------- ----------- -------------
Net gain (loss) on investments and foreign currency
transactions.................................................... 14,387,410 2,061,573 (18,645,658)
----------- ----------- -------------
Net increase (decrease) in net assets resulting from operations... $17,028,059 $ 2,539,438 $ (17,579,325)
========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
35
<PAGE> 135
THE PNC(R) FUND
STATEMENTS OF OPERATIONS (Continued)
FOR THE SIX MONTHS ENDED MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
INTERNATIONAL
EMERGING
MARKETS BALANCED
PORTFOLIO PORTFOLIO
----------- -----------
<S> <C> <C>
Investment income:
Interest................................................................... $ 49,956 $ 2,299,628
Dividends.................................................................. 148,312 1,126,053
Foreign taxes withheld..................................................... (3,204) --
----------- -----------
Total investment income.................................................. 195,064 3,425,681
----------- -----------
Expenses:
Investment advisory fee.................................................... 74,804 409,649
Administration fee......................................................... 11,968 148,963
Custodian fee.............................................................. 22,754 21,533
Transfer agent fee......................................................... 12,988 39,458
Service fees............................................................... 6,155 84,823
Distribution fees.......................................................... 5,368 127,340
Legal and audit............................................................ 553 7,343
Printing................................................................... 359 4,868
Registration fees and expenses............................................. 13,466 13,211
Organization............................................................... 4,777 5,171
Trustees' fees and officer's salary........................................ 86 1,193
Other...................................................................... 2,645 4,071
----------- -----------
155,923 867,623
Less fees voluntarily waived............................................... (39,675) (171,330)
----------- -----------
Total expenses........................................................... 116,248 696,293
----------- -----------
Net investment income........................................................ 78,816 2,729,388
----------- -----------
Realized and unrealized gain (loss) on investments and foreign currency
transactions:
Net realized gain (loss) from:
Investment transactions.................................................. 219,999 (5,399,745)
Foreign currency related transactions.................................... (22,985) --
----------- -----------
197,014 (5,399,745)
----------- -----------
Change in unrealized appreciation (depreciation) from:
Investments.............................................................. (3,206,861) 11,766,008
Foreign currency related transactions.................................... (3,638) --
----------- -----------
(3,210,499) 11,766,008
----------- -----------
Net gain (loss) on investments and foreign currency transactions........... (3,013,485) 6,366,263
----------- -----------
Net increase (decrease) in net assets resulting from operations............ $(2,934,669) $ 9,095,651
========== ==========
</TABLE>
See accompanying notes to financial statements.
36
<PAGE> 136
THE PNC(R) FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SMALL CAP GROWTH
VALUE EQUITY PORTFOLIO GROWTH EQUITY PORTFOLIO EQUITY PORTFOLIO
-------------------------- -------------------------- -------------------------
FOR THE FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED YEAR ENDED YEAR
3/31/95 ENDED 3/31/95 ENDED 3/31/95 ENDED
(UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94
------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations
Net investment income................... $ 8,548,270 $ 13,916,548 $ 1,176,285 $ 687,322 $ 133,201 $ 148,211
Net gain (loss) on investments.......... 39,787,507 7,078,395 15,213,673 (12,967,582) 14,798,616 2,067,164
------------ ------------ ------------ ------------ ------------ -----------
Net increase (decrease) in net assets
resulting from operations............. 48,335,777 20,994,943 16,389,958 (12,280,260) 14,931,817 2,215,375
------------ ------------ ------------ ------------ ------------ -----------
Distributions to shareholders from
Net investment income
Institutional Shares.................. (7,303,195) (12,376,684) (853,402) (62,388) (134,031) (10,677)
Service Shares........................ (1,498,601) (1,666,353) (245,262) (1,583) (1,124) (2,037)
Series A Investor Shares.............. (146,586) (170,702) (28,067) -- -- (29)
------------ ------------ ------------ ------------ ------------ -----------
Total distributions from net
investment income............... (8,948,382) (14,213,739) (1,126,731) (63,971) (135,155) (12,743)
------------ ------------ ------------ ------------ ------------ -----------
Net realized gains
Institutional Shares.................. (11,450,041) (8,108,233) -- (831,835) -- --
Service Shares........................ (2,299,900) (850,677) -- (158,279) -- --
Series A Investor Shares.............. (248,638) (106,250) -- (28,957) -- --
------------ ------------ ------------ ------------ ------------ -----------
Total distributions from net
realized gains.................. (13,998,579) (9,065,160) -- (1,019,071) -- --
------------ ------------ ------------ ------------ ------------ -----------
Total distributions to
shareholders.................... (22,946,961) (23,278,899) (1,126,731) (1,083,042) (135,155) (12,743)
------------ ------------ ------------ ------------ ------------ -----------
Capital share transactions................ (82,943,625) 234,949,582 68,637,240 41,981,179 26,957,090 75,416,557
------------ ------------ ------------ ------------ ------------ -----------
Total increase (decrease)
in net assets................... (57,554,809) 232,665,626 83,900,467 28,617,877 41,753,752 77,619,189
Net assets:
Beginning of period..................... 693,442,703 460,777,077 139,635,183 111,017,306 89,880,900 12,261,711
------------ ------------ ------------ ------------ ------------ -----------
End of period........................... $635,887,894 $693,442,703 $223,535,650 $139,635,183 $131,634,652 $89,880,900
============= ============= ============= ============= ============= ===========
</TABLE>
See accompanying notes to financial statements.
37
<PAGE> 137
THE PNC(R) FUND
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
SMALL CAP VALUE
CORE EQUITY PORTFOLIO INDEX EQUITY PORTFOLIO EQUITY PORTFOLIO
-------------------------- --------------------------- ---------------------------
FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED FOR THE ENDED FOR THE ENDED FOR THE
3/31/95 YEAR ENDED 3/31/95 YEAR ENDED 3/31/95 YEAR ENDED
(UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94
------------ ----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations
Net investment income............. $ 1,500,998 $ 1,557,592 $ 2,640,649 $ 5,453,203 $ 477,865 $ 425,335
Net gain (loss) on investments.... 9,753,543 (345,348) 14,387,410 (379,721) 2,061,573 10,798,567
------------ ----------- ------------ ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from
operations...................... 11,254,541 1,212,244 17,028,059 5,073,482 2,539,438 11,223,902
------------ ----------- ------------ ------------ ------------ ------------
Distributions to shareholders from
Net investment income
Institutional Shares............ (935,598) (1,101,493) (2,325,215) (5,019,786) (497,228) (193,009)
Service Shares.................. (543,028) (541,575) (451,354) (575,649) (35,815) (18,404)
Series A Investor Shares........ (11,349) (5,097) (44,404) (52,872) -- (2,894)
Series B Investor Shares........ -- -- -- -- -- --
------------ ----------- ------------ ------------ ------------ ------------
Total distributions from net
investment income......... (1,489,975) (1,648,165) (2,820,973) (5,648,307) (533,043) (214,307)
------------ ----------- ------------ ------------ ------------ ------------
Net realized gains
Institutional Shares............ (722,978) -- (1,653,604) (1,828,819) (7,036,364) (2,608,236)
Service Shares.................. (611,965) -- (329,586) (163,449) (2,075,543) (541,286)
Series A Investor Shares........ (10,239) -- (31,480) (15,147) (823,691) (206,728)
Series B Investor Shares........ -- -- -- -- (23,641) --
------------ ----------- ------------ ------------ ------------ ------------
Total distributions from net
realized gains............ (1,345,182) -- (2,014,670) (2,007,415) (9,959,239) (3,356,250)
------------ ----------- ------------ ------------ ------------ ------------
Total distributions to
shareholders.............. (2,835,157) (1,648,165) (4,835,643) (7,655,722) (10,492,282) (3,570,557)
------------ ----------- ------------ ------------ ------------ ------------
Capital share transactions.......... 61,805,093 28,481,078 22,269,197 (19,530,455) 4,370,290 63,383,683
------------ ----------- ------------ ------------ ------------ ------------
Total increase (decrease)
in net assets............. 70,224,477 28,045,157 34,461,613 (22,112,695) (3,582,554) 71,037,028
Net assets:
Beginning of period............... 98,017,374 69,972,217 177,754,041 199,866,736 230,615,046 159,578,018
------------ ----------- ------------ ------------ ------------ ------------
End of period..................... $168,241,851 $98,017,374 $212,215,654 $177,754,041 $227,032,492 $230,615,046
============= =========== ============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
38
<PAGE> 138
THE PNC(R) FUND
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
<TABLE>
<CAPTION>
INTERNATIONAL
INTERNATIONAL EQUITY EMERGING MARKETS
PORTFOLIO PORTFOLIO BALANCED PORTFOLIO
-------------------------- ----------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS PERIOD SIX MONTHS FOR THE
ENDED YEAR ENDED 6/17/94(1) ENDED YEAR
3/31/95 ENDED 3/31/95 THROUGH 3/31/95 ENDED
(UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94
------------ ------------ ----------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations
Net investment income..................... $ 1,066,333 $ 3,079,563 $ 78,816 $ 26,722 $ 2,729,388 $ 3,552,179
Net gain (loss) on investments and foreign
currency related transactions........... (18,645,658) 16,813,095 (3,013,485) 330,075 6,366,263 (5,517,471)
------------ ------------ ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............... (17,579,325) 19,892,658 (2,934,669) 356,797 9,095,651 (1,965,292)
------------ ------------ ----------- ---------- ------------ ------------
Net investment income
Institutional Shares.................... -- (1,219,026) -- -- (400,510) (518,473)
Service Shares.......................... -- (170,647) -- -- (1,265,062) (1,491,022)
Series A Investor Shares................ -- (42,840) -- -- (1,075,068) (1,542,512)
Series B Investor Shares................ -- -- -- -- (22,432) --
------------ ------------ ----------- ---------- ------------ ------------
Total distributions from net
investment income................. -- (1,432,513) -- -- (2,763,072) (3,552,007)
------------ ------------ ----------- ---------- ------------ ------------
Net realized gains
Institutional Shares.................... (7,774,154) (2,844,395) (85,254) -- (223,248) (74,267)
Service Shares.......................... (2,155,634) (447,150) (106,635) -- (746,415) (125,603)
Series A Investor Shares................ (429,789) (119,272) (55,511) -- (696,601) (232,282)
Series B Investor Shares................ (14,710) -- -- -- (12,892) --
------------ ------------ ----------- ---------- ------------ ------------
Total distributions from net
realized gains.................... (10,374,287) (3,410,817) (247,400) -- (1,679,156) (432,152)
------------ ------------ ----------- ---------- ------------ ------------
Total distributions to
shareholders...................... (10,374,287) (4,843,330) (247,400) -- (4,442,228) (3,984,159)
------------ ------------ ----------- ---------- ------------ ------------
Capital share transactions.................. 50,707,398 212,755,730 12,242,454 8,516,188 11,654,836 83,590,431
------------ ------------ ----------- ---------- ------------ ------------
Total increase in net assets........ 22,753,786 227,805,058 9,060,385 8,872,985 16,308,259 77,640,980
Net assets:
Beginning of period....................... 374,511,915 146,706,857 8,872,985 -- 145,940,514 68,299,534
------------ ------------ ----------- ---------- ------------ ------------
End of period............................. $397,265,701 $374,511,915 $17,933,370 $8,872,985 $162,248,773 $145,940,514
============= ============= =========== ========== ============= =============
</TABLE>
- -------------
(1) Commencement of operations.
See accompanying notes to financial statements.
39
<PAGE> 139
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
VALUE EQUITY PORTFOLIO
---------------------------------------------------
INSTITUTIONAL CLASS
---------------------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR YEAR 4/20/92(1)
3/31/95 ENDED ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93 9/30/92
----------- -------- -------- ---------
<S> <C> <C> <C> <C>
Net asset value at beginning of period...................... $ 11.62 $ 11.68 $ 9.78 $ 10.00
----------- -------- -------- ---------
Income from investment operations
Net investment income.................................... 0.16 0.27 0.22 0.12
Net gain (loss) on investments
(both realized and unrealized)......................... 0.78 0.16 1.91 (0.24)
----------- -------- -------- ---------
Total from investment operations..................... 0.94 0.43 2.13 (.12)
----------- -------- -------- ---------
Less distributions
Distributions from net investment income................. (0.17) (0.27) (0.23) (0.10)
Distributions from net realized capital gains............ (0.25) (0.22) -- --
----------- -------- -------- ---------
Total distributions.................................. (0.42) (0.49) (0.23) (0.10)
----------- -------- -------- ---------
Net asset value at end of period............................ $ 12.14 $ 11.62 $ 11.68 $ 9.78
========== ======= ======= ========
Total return................................................ 8.37% 3.76% 21.92% (1.19)%
Ratios/Supplemental data
Net assets at end of period (in thousands)............... $ 497,418 $577,996 $432,776 $322,806
Ratios of expenses to average net assets
After advisory/administration fee waivers.............. 0.65(2) 0.65% 0.80% 0.85%(2)
Before advisory/administration fee waivers............. 0.80(2) 0.81% 0.83% 0.85%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.............. 2.72(2) 2.44% 2.07% 2.62%(2)
Before advisory/administration fee waivers............. 2.58(2) 2.28% 2.04% 2.62%(2)
Portfolio turnover rate..................................... 6% 11% 11% 13%
<CAPTION>
VALUE EQUITY PORTFOLIO
--------------------------------------
SERVICE CLASS
--------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 7/29/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- -------- ---------
<S> <C> <C> <C>
Net asset value at beginning of period...................... $ 11.62 $ 11.68 $ 11.21
----------- -------- ---------
Income from investment operations
Net investment income.................................... 0.14 0.25 0.04
Net gain (loss) on investments
(both realized and unrealized)......................... 0.78 0.16 0.48
----------- -------- ---------
Total from investment operations..................... 0.92 0.41 0.52
----------- -------- ---------
Less distributions
Distributions from net investment income................. (0.15) (0.25) (0.05)
Distributions from net realized capital gains............ (0.25) (0.22) --
----------- -------- ---------
Total distributions.................................. (0.40) (0.47) (0.05)
----------- -------- ---------
Net asset value at end of period............................ $ 12.14 $ 11.62 $ 11.68
========= ======= ========
Total return................................................ 8.24% 3.51% 4.64%
Ratios/Supplemental data
Net assets at end of period (in thousands)............... $ 125,897 $105,035 $23,137
Ratios of expenses to average net assets
After advisory/administration fee waivers.............. 0.90%(2) 0.90% 0.91%(2)
Before advisory/administration fee waivers............. 1.05%(2) 1.06% 0.94%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.............. 2.48%(2) 2.24% 2.44%(2)
Before advisory/administration fee waivers............. 2.33%(2) 2.08% 2.41%(2)
Portfolio turnover rate..................................... 6% 11% 11%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
40
<PAGE> 140
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
VALUE EQUITY PORTFOLIO
-----------------------------------------------
SERIES A INVESTOR CLASS
-----------------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR YEAR 5/02/92(1)
3/31/95 ENDED ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93 9/30/92
----------- ------- ------- -------
<S> <C> <C>
Net asset value at beginning of period............................. $ 11.62 $11.69 $ 9.78 $10.00
----------- ------- ------- -------
Income from investment operations
Net investment income........................................... 0.13 0.23 0.22 0.12
Net gain (loss) on investments (both realized and unrealized)... 0.79 0.15 1.91 (0.24)
----------- ------- ------- -------
Total from investment operations............................ 0.92 0.38 2.13 (0.12)
----------- ------- ------- -------
Less distributions
Distributions from net investment income........................ (0.15) (0.23) (0.22) (0.10)
Distributions from net realized capital gains................... (0.25) (0.22) -- --
----------- ------- ------- -------
Total distributions......................................... (0.40) (0.45) (0.22) (0.10)
----------- ------- ------- -------
Net asset value at end of period................................... $ 12.14 $11.62 $11.69 $ 9.78
======= ====== ====== ======
Total return....................................................... 8.16%(3) 3.32%(3) 21.95%(3) (1.19)%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)...................... $12,573 $10,412 $4,865 $ 16
Ratios of expenses to average net assets
After advisory/administration fee waivers..................... 1.05%(2) 1.05% 0.92% 0.85%(2)
Before advisory/administration fee waivers.................... 1.20%(2) 1.21% 0.95% 0.85%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers..................... 2.32%(2) 2.08% 1.96% 2.62%2(2)
Before advisory/administration fee waivers.................... 2.17%(2) 1.92% 1.93% 2.62%2(2)
Portfolio turnover rate............................................ 6% 11% 11% 13%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
41
<PAGE> 141
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GROWTH EQUITY PORTFOLIO
------------------------------------
INSTITUTIONAL CLASS
------------------------------------
FOR THE
SIX MONTHS
ENDED YEAR YEAR
3/31/95 ENDED ENDED
(UNAUDITED) 9/30/94 9/30/93
----------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period............................................. $ 10.19 $11.58 $ 9.92
----------- ------- --------
Income from investment operations
Net investment income........................................................... 0.07 0.06 0.06
Net gain (loss) on investments (both realized and unrealized)................... 0.74 (1.34) 2.07
----------- ------- --------
Total from investment operations............................................ 0.81 (1.28) 2.13
----------- ------- --------
Less distributions
Distributions from net investment income........................................ (0.08) (0.01) (0.07)
Distributions from capital...................................................... -- -- (0.01)
Distributions from net realized capital gains................................... -- (0.10) (0.39)
----------- ------- --------
Total distributions......................................................... (0.08) (0.11) (0.47)
----------- ------- --------
Net asset value at end of period................................................... $ 10.92 $10.19 $ 11.58
========== ====== =======
Total return....................................................................... 8.04% (11.14)% 22.18%
Ratios/Supplemental data
Net assets at end of period (in thousands)...................................... $ 166,210 $97,834 $100,049
Ratios of expenses to average net assets
After advisory/administration fee waivers..................................... 0.65%(2) 0.65% 0.81%
Before advisory/administration fee waivers.................................... 0.84%(2) 0.89% 0.87%
Ratios of net investment income to average net assets
After advisory/administration fee waivers..................................... 1.45%(2) 0.62% 0.50%
Before advisory/administration fee waivers.................................... 1.26%(2) 0.38% 0.44%
Portfolio turnover rate............................................................ 34% 212% 175%
<CAPTION>
GROWTH EQUITY PORTFOLIO
------------------------------------
INSTITUTIONAL CLASS
------------------------------------
FOR THE
PERIOD
YEAR YEAR 11/1/89(1)
ENDED ENDED THROUGH
9/30/92 9/30/91 9/30/90
------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period............................................. $ 10.28 $ 9.98 $ 10.00
------- ------- --------
Income from investment operations
Net investment income........................................................... 0.21 0.24 0.31
Net gain (loss) on investments (both realized and unrealized)................... 0.30 1.51 (0.26)
------- ------- --------
Total from investment operations............................................ 0.51 1.75 0.05
------- ------- --------
Less distributions
Distributions from net investment income........................................ (0.37) (0.32) (0.07)
Distributions from capital...................................................... -- -- --
Distributions from net realized capital gains................................... (0.50) (1.13) --
------- ------- --------
Total distributions......................................................... (0.87) (1.45) (0.07)
------- ------- --------
Net asset value at end of period................................................... $ 9.92 $ 10.28 $ 9.98
====== ======= =======
Total return....................................................................... 4.98% 19.47% 0.40%
Ratios/Supplemental data
Net assets at end of period (in thousands)...................................... $58,372 $54,912 $39,790
Ratios of expenses to average net assets
After advisory/administration fee waivers..................................... 0.85% 0.85% 0.85%(2)
Before advisory/administration fee waivers.................................... 0.86% 0.91% 0.88%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers..................................... 2.07% 2.59% 2.75%(2)
Before advisory/administration fee waivers.................................... 2.06% 2.53% 2.72%(2)
Portfolio turnover rate............................................................ 162% 211% 149%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
42
<PAGE> 142
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GROWTH EQUITY PORTFOLIO
-----------------------------------------
SERVICE CLASS
-----------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 7/28/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- ---------
<S> <C>
Net asset value at beginning of period............................... $ 10.18 $11.57 $10.54
----------- ------- -------
Income from investment operations
Net investment income............................................. 0.06 0.03 --
Net gain (loss) on investments (both realized and unrealized)..... 0.73 (1.32) 1.03
----------- ------- -----
Total from investment operations.............................. 0.79 (1.29) 1.03
----------- ------- ------
Less Distributions
Distributions from net investment income.......................... (0.06) -- --
Distributions from capital........................................ -- -- --
Distributions from net realized capital gains..................... -- (0.10) --
----------- ------- ------
Total distributions........................................... (0.06) (0.10) --
----------- ------- ------
Net asset value at end of period..................................... $ 10.91 $10.18 $11.57
=========== ======= ======
Total return......................................................... 7.84% (11.20)% 9.77%
Ratios/Supplemental data
Net assets at end of period (in thousands)........................ $50,177 $36,752 $8,606
Ratios of expenses to average net assets
After advisory/administration fee waivers....................... 0.90%(2) 0.90% 0.89%(2)
Before advisory/administration fee waivers...................... 1.09%(2) 1.14% 0.95%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers....................... 1.20%(2) 0.51% (0.03)%
Before advisory/administration fee waivers...................... 1.00%(2) 0.26% (0.09)%
Portfolio turnover rate.............................................. 34% 212% 175%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
43
<PAGE> 143
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GROWTH EQUITY PORTFOLIO
-------------------------------------------------
SERIES A INVESTOR CLASS
-------------------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR YEAR 3/14/92(1)
3/31/95 ENDED ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93 9/30/92
----------- ------- ------- -------
<S> <C> <C> <C>
Net asset value at beginning of period.............................. $ 10.16 $11.57 $ 9.92 $10.09
----------- ------- ------- -------
Income from investment operations
Net investment income............................................ 0.05 0.02 0.02 0.08
Net gain (loss) on investments (both realized and unrealized).... 0.74 (1.33) 2.10 (0.10)
----------- ------- ------- -------
Total from investment operations............................. 0.79 (1.31) 2.12 (0.02)
----------- ------- ------- -------
Less distributions
Distributions from net investment income......................... (0.05) -- (0.07) (0.15)
Distributions from capital....................................... -- -- (0.01) --
Distributions from net realized capital gains.................... -- (0.10) (0.39) --
----------- ------- ------- -------
Total distributions.......................................... (0.05) (0.10) (0.47) (0.15)
----------- ------- ------- -------
Net asset value at end of period.................................... $ 10.90 $10.16 $11.57 $ 9.92
========= =========== ======= ======
Total return........................................................ 7.81%(3) (11.38)%(3) 22.08%(3) (0.17)%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)....................... $ 7,149 $5,049 $2,362 $ 239
Ratios of expenses to average net assets
After advisory/administration fee waivers...................... 1.05%(2) 1.05% 0.91% 0.85%(2)
Before advisory/administration fee waivers..................... 1.24%(2) 1.29% 0.97% 0.86%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................... 1.05%(2) 0.29% 0.18% 2.07%(2)
Before advisory/administration fee waivers..................... 0.85%(2) 0.05% 0.12% 2.06%(2)
Portfolio turnover rate............................................. 34% 212% 175% 162%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
44
<PAGE> 144
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SMALL CAP GROWTH EQUITY
PORTFOLIO
--------------------------------
INSTITUTIONAL CLASS
--------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 9/14/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- -------- -------
<S> <C> <C> <C>
Net asset value at beginning of period.............................................. $ 10.16 $ 10.47 $10.00
----------- -------- -------
Income from investment operations
Net investment income............................................................ 0.01 0.03 --
Net gain (loss) on investments (both realized and unrealized).................... 1.49 (0.33) 0.47
----------- -------- -------
Total from investment operations............................................. 1.50 (0.30) 0.47
----------- -------- -------
Less distributions
Distributions from net investment income......................................... (0.02) (0.01) --
Distributions from net realized capital gains.................................... -- -- --
----------- -------- -------
Total distributions.......................................................... (0.02) (0.01) --
----------- -------- -------
Net asset value at end of period.................................................... $ 11.64 $ 10.16 $10.47
========= ======= ======
Total return........................................................................ 14.78% (2.89)% 4.70%
Ratios/Supplemental data
Net assets at end of period (in thousands)....................................... $96,601 $65,612 $11,310
Ratios of expenses to average net assets
After advisory/administration fee waivers...................................... 0.73%(2) 0.48% 0.73%(2)
Before advisory/administration fee waivers..................................... 0.87%(2) 1.04% 1.42%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................................... 0.32%(2) 0.45% (0.11)%(2)
Before advisory/administration fee waivers..................................... 0.18%(2) (0.10)% (0.80)%(2)
Portfolio turnover rate............................................................. 41% 89% 9%
<CAPTION>
SMALL CAP GROWTH EQUITY
PORTFOLIO
--------------------------------
SERVICE CLASS
--------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 9/15/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- --------
<S> <C> <C> <C>
Net asset value at beginning of period.............................................. $ 10.14 $10.47 $ 9.96
----------- ------- --------
Income from investment operations
Net investment income............................................................ -- 0.01 --
Net gain (loss) on investments (both realized and unrealized).................... 1.49 (0.34) 0.51
----------- ------- --------
Total from investment operations............................................. 1.49 (0.33) 0.51
----------- ------- --------
Less distributions
Distributions from net investment income......................................... -- -- --
Distributions from net realized capital gains.................................... -- -- --
----------- ------- --------
Total distributions.......................................................... -- -- --
----------- ------- --------
Net asset value at end of period.................................................... $ 11.63 $10.14 $10.47
========= ====== ======
Total return........................................................................ 14.70% (3.12)% 5.12%
Ratios/Supplemental data
Net assets at end of period (in thousands)....................................... $31,794 $22,648 $ 911
Ratios of expenses to average net assets
After advisory/administration fee waivers...................................... 0.98%(2) 0.71% 0.99%(2)
Before advisory/administration fee waivers..................................... 1.12%(2) 1.27% 1.68%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................................... 0.07%(2) 0.21% (0.34)%(2)
Before advisory/administration fee waivers..................................... (0.08)%(2) (0.34)% (1.03)%(2)
Portfolio turnover rate............................................................. 41% 89% 9%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
45
<PAGE> 145
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SMALL CAP GROWTH EQUITY PORTFOLIO
-------------------------------------
SERIES A INVESTOR CLASS
-------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 9/15/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- -------
<S> <C> <C> <C>
Net asset value at beginning of period........................... $ 10.12 $10.47 $ 9.96
------- ------ ------
Income from investment operations
Net investment income......................................... -- -- --
Net gain (loss) on investments (both realized and unrealized). 1.48 (0.35) 0.51
----- ------- ------
Total from investment operations.......................... 1.48 (0.35) 0.51
------- ------- ------
Less distributions
Distributions from net investment income...................... -- -- --
Distributions from net realized capital gains................. -- -- --
------- ------- ------
Total distributions....................................... -- -- --
------- ------- ------
Net asset value at end of period................................. $ 11.60 $10.12 $10.47
======== ====== ======
Total return..................................................... 14.62%(3) (3.33)%(3) 5.12%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands).................... $ 3,240 $1,620 $ 41
Ratios of expenses to average net assets
After advisory/administration fee waivers................... 1.13%(2) 0.86% 1.13%(2)
Before advisory/administration fee waivers.................. 1.27%(2) 1.42% 1.82%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers................... (0.06)%(2) 0.07% (0.48)%(2)
Before advisory/administration fee waivers.................. (0.20)%(2) (0.49)% (1.17)%(2)
Portfolio turnover rate.......................................... 41% 89% 9%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
46
<PAGE> 146
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
CORE EQUITY PORTFOLIO
-----------------------------------
INSTITUTIONAL CLASS
-----------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 9/13/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- -------
<S> <C> <C> <C>
Net asset value at beginning of period...................................... $ 9.92 $ 9.97 $10.00
----------- ------- -------
Income from investment operations
Net investment income.................................................... 0.11 0.22 0.01
Net gain (loss) on investments (both realized and unrealized)............ 0.62 (0.04) (0.04)
----------- ------- -------
Total from investment operations..................................... 0.73 0.18 (0.03)
----------- ------- -------
Less distributions
Distributions from net investment income................................. (0.11) (0.23) --
Distributions from net realized capital gains............................ (0.12) -- --
----------- ------- -------
Total distributions.................................................. (0.23) (0.23) --
----------- ------- -------
Net asset value at end of period............................................ $ 10.42 $ 9.92 $ 9.97
========== ====== ======
Total return................................................................ 7.52% 1.79% (0.30)%
Ratios/Supplemental data
Net assets at end of period (in thousands)............................... $ 109,896 $48,123 $69,268
Ratios of expenses to average net assets
After advisory/administration fee waivers.............................. 0.65%(2) 0.65% 0.65%(2)
Before advisory/administration fee waivers............................. 0.84%(2) 0.93% 0.87%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.............................. 2.51%(2) 2.11% 2.17%(2)
Before advisory/administration fee waivers............................. 2.32%(2) 1.82% 1.95%(2)
Portfolio turnover rate..................................................... 28% 88% 2%
<CAPTION>
CORE EQUITY PORTFOLIO
-----------------------------------
SERVICE CLASS
-----------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 9/15/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- -------
<S> <C> <C> <C>
Net asset value at beginning of period...................................... $ 9.92 $ 9.97 $10.00
----------- ------- -------
Income from investment operations
Net investment income.................................................... 0.10 0.19 --
Net gain (loss) on investments (both realized and unrealized)............ 0.62 (0.04) (0.03)
----------- ------- -------
Total from investment operations..................................... 0.72 0.15 (0.03)
----------- ------- -------
Less distributions
Distributions from net investment income................................. (0.10) (0.20) --
Distributions from net realized capital gains............................ (0.12) -- --
----------- ------- -------
Total distributions.................................................. (0.22) (0.20) --
----------- ------- -------
Net asset value at end of period............................................ $ 10.42 $ 9.92 $ 9.97
========= ====== ======
Total return................................................................ 7.38% 1.55% (0.30)%
Ratios/Supplemental data
Net assets at end of period (in thousands)............................... $56,690 $49,293 $ 704
Ratios of expenses to average net assets
After advisory/administration fee waivers.............................. 0.90%(2) 0.90% 0.90%(2)
Before advisory/administration fee waivers............................. 1.11%(2) 1.18% 1.12%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.............................. 2.30%(2) 1.96% 1.92%(2)
Before advisory/administration fee waivers............................. 2.08%(2) 1.68% 1.70%(2)
Portfolio turnover rate..................................................... 28% 88% 2%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
47
<PAGE> 147
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
CORE EQUITY PORTFOLIO
------------------------------
SERIES A INVESTOR CLASS
------------------------------
FOR THE
SIX MONTHS PERIOD
ENDED 10/13/93(1)
3/31/95 THROUGH
(UNAUDITED) 9/30/94
----------- --------
<S> <C> <C>
Net asset value at beginning of period.................................... $ 9.92 $ 9.96
------- --------
Income from investment operations
Net investment income.................................................. 0.11 0.18
Net gain (loss) on investments (both realized and unrealized).......... 0.61 (0.03)
------- --------
Total from investment operations................................... 0.72 0.15
------- --------
Less distributions
Distributions from net investment income............................... (0.10) (0.19)
Distributions from net realized capital gains.......................... (0.12) --
-------- --------
Total distributions................................................ (0.22) (0.19)
------ --------
Net asset value at end of period.......................................... $ 10.42 $ 9.92
======= =======
Total Return.............................................................. 7.32%(3) 1.54%(3)
Ratios/Supplemental data
Net Assets at end of period (in thousands)............................. $ 1,656 $ 601
Ratios of expenses to average net assets
After advisory/administration fee waivers............................ 1.05%(2) 1.05%(2)
Before advisory/administration fee waivers........................... 1.25%(2) 1.34%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers............................ 2.12%(2) 1.89%(2)
Before advisory/administration fee waivers........................... 1.92%(2) 1.60%(2)
Portfolio turnover rate................................................... 28% 88%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
48
<PAGE> 148
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INDEX EQUITY PORTFOLIO
--------------------------------------------------
INSTITUTIONAL CLASS
--------------------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR YEAR 4/20/92(1)
3/31/95 ENDED ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93 9/30/92
----------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value at beginning of period......................... $ 10.93 $ 11.02 $ 10.06 $ 10.00
Income from investment operations
Net investment income....................................... 0.16 0.31 0.27 0.13
Net gain (loss) on investments
(both realized and unrealized)............................ 0.86 0.03 0.97 0.03
----------- -------- -------- --------
Total from investment operations........................ 1.02 0.34 1.24 0.16
----------- -------- -------- --------
Less distributions
Distributions from net investment income.................... (0.17) (0.32) (0.28) (0.10)
Distributions from net realized capital gains............... (0.12) (0.11) -- --
----------- -------- -------- --------
Total distributions..................................... (0.29) (0.43) (0.28) (0.10)
----------- -------- -------- --------
Net asset value at end of period............................... $ 11.66 $ 10.93 $ 11.02 $ 10.06
================ =========== =========== ===========
Total return................................................... 9.58% 3.07% 12.40% 1.62%
Ratios/Supplemental data
Net assets at end of period (in thousands).................. $ 158,645 $147,746 $186,163 $175,888
Ratios of expenses to average net assets
After advisory/administration fee waivers................. 0.15%(2) 0.15% 0.40% 0.45%(2)
Before advisory/administration fee waivers................ 0.51%(2) 0.52% 0.52% 0.64%
Ratios of net investment income to average net assets
After advisory/administration fee waivers................. 2.98%(2) 2.72% 2.46% 2.85%(2)
Before advisory/administration fee waivers................ 2.62%(2) 2.35% 2.34% 2.66%(2)
Portfolio turnover rate........................................ 3% 17% 8% 23%
<CAPTION>
INDEX EQUITY PORTFOLIO
-----------------------------------
SERVICE CLASS
-----------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR 7/29/93(1)
3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93
----------- ------- -------
<S> <C<C> <C> <C>
Net asset value at beginning of period......................... $ 10.93 $11.02 $10.76
Income from investment operations
Net investment income....................................... 0.16 0.29 0.05
Net gain (loss) on investments
(both realized and unrealized)............................ 0.85 0.02 0.29
----------- ------- -------
Total from investment operations........................ 1.01 0.31 0.34
----------- ------- -------
Less distributions
Distributions from net investment income.................... (0.16) (0.29) (0.08)
Distributions from net realized capital gains............... (0.12) (0.11) --
----------- ------- -------
Total distributions..................................... (0.28) (0.40) (0.08)
----------- ------- -------
Net asset value at end of period............................... $ 11.66 $10.93 $11.02
================ =========== ===========
Total return................................................... 9.46% 2.78% 3.16%
Ratios/Supplemental data
Net assets at end of period (in thousands).................. $49,834 $27,376 $12,441
Ratios of expenses to average net assets
After advisory/administration fee waivers................. 0.40%(2) 0.40% 0.41%(2)
Before advisory/administration fee waivers................ 0.76%(2) 0.77% 0.53%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers................. 2.73%(2) 2.49% 3.04%(2)
Before advisory/administration fee waivers................ 2.37%(2) 2.12% 2.92%(2)
Portfolio turnover rate........................................ 3% 17% 8%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
49
<PAGE> 149
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INDEX EQUITY PORTFOLIO
-----------------------------------------------------
SERIES A INVESTOR CLASS
-----------------------------------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED YEAR YEAR 6/02/92(1)
3/31/95 ENDED ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93 9/30/92
----------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value at beginning of period.............................. $ 10.93 $11.02 $10.06 $10.07
----------- ------- ------- -------
Income from investment operations
Net investment income............................................ 0.14 0.25 0.27 0.10
Net gain (loss) on investments (both realized and unrealized).... 0.85 0.04 0.96 (0.01)
----------- ------- ------- -------
Total from investment operations............................. 0.99 0.29 1.23 0.09
----------- ------- ------- -------
Less distributions
Distributions from net investment income......................... (0.16) (0.27) (0.27) (0.10)
Distributions from net realized capital gains.................... (0.12) (0.11) -- --
----------- ------- ------- -------
Total distributions.......................................... (0.28) (0.38) (0.27) (0.10)
----------- ------- ------- -------
Net asset value at end of period.................................... $ 11.64 $10.93 $11.02 $10.06
========= ====== ======= ======
Total return........................................................ 9.23%(3) 2.66%(3) 12.33%(3) 0.91%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)....................... $ 3,736 $2,632 $1,263 $ 56
Ratios of expenses to average net assets
After advisory/administration fee waivers...................... 0.55%(2) 0.55% 0.49% 0.45%(2)
Before advisory/administration fee waivers..................... 0.91%(2) 0.92% 0.61% 0.64%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................... 2.56%(2) 2.35% 2.48% 2.85%(2)
Before advisory/administration fee waivers..................... 2.20%(2) 1.98% 2.36% 2.66%(2)
Portfolio turnover rate............................................. 3% 17% 8% 23%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
50
<PAGE> 150
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SMALL CAP VALUE EQUITY PORTFOLIO
-------------------------------------------------------------------
SERVICE
INSTITUTIONAL CLASS CLASS
------------------------------------------------- -----------
FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS
ENDED YEAR YEAR 4/13/92(1) ENDED
3/31/95 ENDED ENDED THROUGH 3/31/95
(UNAUDITED) 9/30/94 9/30/93 9/30/92 (UNAUDITED)
----------- -------- -------- ------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period....................... $ 13.62 $ 13.08 $ 10.14 $10.00 $ 13.59
----------- -------- -------- ------- -----------
Income from investment operations
Net investment income..................................... 0.04 0.04 0.04 0.02 0.02
Net gain (loss) on investments
(both realized and unrealized).......................... 0.11 0.77 3.02 0.13 0.13
----------- -------- -------- ------- -----------
Total from investment operations...................... 0.15 0.81 3.06 0.15 0.15
----------- -------- -------- ------- -----------
Less distributions
Distributions from net investment income.................. (0.04) (0.02) (0.04) (0.01) (0.01)
Distributions from net realized capital gains............. (0.61) (0.25) (0.08) -- (0.61)
----------- -------- -------- ------- -----------
Total distributions................................... (0.65) (0.27) (0.12) (0.01) (0.62)
----------- -------- -------- ------- -----------
Net asset value at end of period............................. $ 13.12 $ 13.62 $ 13.08 $10.14 $ 13.12
========== ======= ======= ====== =========
Total return................................................. 1.39% 6.28% 30.36% 1.50% 1.36%
Ratios/Supplemental data
Net assets at end of period (in thousands)................ $ 159,091 $168,360 $128,805 $75,045 $48,302
Ratios of expenses to average net assets
After advisory/administration fee waivers............... 0.73%(2) 0.73% 0.83% 0.85%(2) 0.98%(2)
Before advisory/administration fee waivers.............. 0.82%(2) 0.85% 0.87% 0.89%(2) 1.08%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers............... 0.52%(2) 0.28% 0.31% 0.51%(2) 0.27%(2)
Before advisory/administration fee waivers.............. 0.43%(2) 0.16% 0.27% 0.47%(2) 0.18%(2)
Portfolio turnover rate...................................... 21% 18% 41% 17% 21%
<CAPTION>
SMALL CAP VALUE
EQUITY PORTFOLIO
-------------------
SERVICE CLASS
-------------------
FOR THE
PERIOD
YEAR 7/29/93(1)
ENDED THROUGH
9/30/94 9/30/93
------- --------
<S> <C> <C>
Net asset value at beginning of period....................... $13.08 $ 12.28
------- --------
Income from investment operations
Net investment income..................................... -- --
Net gain (loss) on investments
(both realized and unrealized).......................... 0.77 0.80
------- --------
Total from investment operations...................... 0.77 0.80
------- --------
Less distributions
Distributions from net investment income.................. (0.01) --
Distributions from net realized capital gains............. (0.25) --
------- --------
Total distributions................................... (0.26) --
------- --------
Net asset value at end of period............................. $13.59 $ 13.08
====== =======
Total return................................................. 5.96% 6.51%
Ratios/Supplemental data
Net assets at end of period (in thousands)................ $45,372 $21,689
Ratios of expenses to average net assets
After advisory/administration fee waivers............... 0.98% 0.99%(2)
Before advisory/administration fee waivers.............. 1.10% 1.03%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers............... 0.03% 0.12%(2)
Before advisory/administration fee waivers.............. (0.09)% 0.08%(2)
Portfolio turnover rate...................................... 18% 41%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
51
<PAGE> 151
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SMALL CAP VALUE EQUITY PORTFOLIO
-------------------------------------
SERIES A
INVESTOR CLASS
-------------------------------------
FOR THE
SIX MONTHS
ENDED YEAR YEAR
3/31/95 ENDED ENDED
(UNAUDITED) 9/30/94 9/30/93
----------- -------- --------
<S> <C> <C> <C>
Net asset value at beginning of period.............................................. $ 13.58 $ 13.07 $10.14
----------- -------- --------
Income from investment operations
Net investment income............................................................ 0.01 (0.01) 0.03
Net gain (loss) on investments (both realized and unrealized).................... 0.13 0.77 3.02
----------- -------- --------
Total from investment operations............................................. 0.14 0.76 3.05
----------- -------- --------
Less distributions
Distributions from net investment income......................................... -- -- (0.04)
Distributions from net realized capital gains.................................... (0.61) (0.25) (0.08)
----------- -------- --------
Total distributions.......................................................... (0.61) (0.25) (0.12)
----------- -------- --------
Net asset value at end of period.................................................... $ 13.11 $ 13.58 $13.07
================ ============ ============
Total return........................................................................ 1.28%(3) 5.93%(3) 30.36%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)....................................... $18,765 $16,884 $9,084
Ratios of expenses to average net assets
After advisory/administration fee waivers...................................... 1.13%(2) 1.13% 0.94%
Before advisory/administration fee waivers..................................... 1.22%(2) 1.25% 0.98%
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................................... 0.13%(2) (0.11)% 0.19%
Before advisory/administration fee waivers..................................... 0.03%(2) (0.23)% 0.15%
Portfolio turnover rate............................................................. 21% 18% 41%
<CAPTION>
SMALL CAP VALUE
EQUITY PORTFOLIO
-------------------------------
SERIES A SERIES B
INVESTOR CLASS INVESTOR CLASS
--------------- ---------------
FOR THE
FOR THE PERIOD
PERIOD 10/03/94(1)
6/02/92(1) THROUGH
THROUGH 3/31/95
9/30/92 (UNAUDITED)
------- --------------
<S> <C<C> <C>
Net asset value at beginning of period.............................................. $10.06 $13.51
------- ------
Income from investment operations
Net investment income............................................................ 0.02 (0.02)
Net gain (loss) on investments (both realized and unrealized).................... 0.07 0.20
------- ------
Total from investment operations............................................. 0.09 0.18
------- ------
Less distributions
Distributions from net investment income......................................... (0.01) --
Distributions from net realized capital gains.................................... -- (0.61)
------- ------
Total distributions.......................................................... (0.01) (0.61)
------- ------
Net asset value at end of period.................................................... $10.14 $13.08
====== ==========
Total return........................................................................ 0.89%(3) 1.57%(4)
Ratios/Supplemental data
Net assets at end of period (in thousands)....................................... $ 62 $ 874
Ratios of expenses to average net assets
After advisory/administration fee waivers...................................... 0.85%(2) 1.73%(2)
Before advisory/administration fee waivers..................................... 0.89%(2) 1.82%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................................... 0.51%(2) (0.42)%(2)
Before advisory/administration fee waivers..................................... 0.47%(2) (0.52)%(2)
Portfolio turnover rate............................................................. 17% 21%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
(4) Contingent deferred sales load not reflected in total return.
See accompanying notes to financial statements.
52
<PAGE> 152
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
----------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
------------------------------------------------ -------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED YEAR YEAR 4/27/92(1) ENDED YEAR 7/29/93(1)
3/31/95 ENDED ENDED THROUGH 3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93 9/30/92 (UNAUDITED) 9/30/94 9/30/93
---------- -------- -------- ------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period.......................... $ 13.44 $ 12.48 $ 9.87 $10.00 $ 13.41 $ 12.47 $ 11.76
---------- -------- -------- ------- ----------- -------- --------
Income from investment operations
Net investment income......... (0.03) 0.15 0.11 0.11 (0.03) 0.14 0.02
Net realized gain (loss) on
investments................. (0.62) 1.17 2.61 (0.17) (0.62) 1.14 0.69
---------- -------- -------- ------- ----------- -------- --------
Total from investment
operations............... (0.65) 1.32 2.72 (0.06) (0.65) 1.28 0.71
---------- -------- -------- ------- ----------- -------- --------
Less distributions
Distributions from net
investment income........... -- (0.11) (0.11) (0.07) -- (0.09) --
Distributions from net
realized capital gains...... (0.36) (0.25) -- -- (0.36) (0.25) --
---------- -------- -------- ------- ----------- -------- --------
Total distributions....... (0.36) (0.36) (0.11) (0.07) (0.36) (0.34) --
---------- -------- -------- ------- ----------- -------- --------
Net asset value at end of
period.......................... $ 12.43 $ 13.44 $ 12.48 $ 9.87 $ 12.40 $ 13.41 $ 12.47
========= ====== ====== ===== ========= ====== ======
Total return..................... (4.82)% 10.71% 27.72% (0.61)% (4.84)% 10.36% 6.03%
Ratios/Supplemental data
Net assets at end of period
(in thousands).............. $296,727 $284,905 $131,052 $60,357 $84,041 $75,174 $11,985
Ratios of expenses to average
net assets
After
advisory/administration
fee waivers............... 0.95%(2) 0.95% 1.10% 1.20%(2) 1.20%(2) 1.20% 1.18%(2)
Before
advisory/administration
fee waivers............... 1.14%(2) 1.14% 1.16% 1.21%(2) 1.39%(2) 1.39% 1.24%(2)
Ratios of net investment
income to average net assets
After
advisory/administration
fee waivers............... 0.64%(2) 1.27% 1.17% 2.59%(2) 0.40%(2) 1.09% 1.01%(2)
Before
advisory/administration
fee waivers............... 0.46% 1.08% 1.11% 2.58%(2) 0.21%(2) 0.90% 0.95%(2)
Portfolio turnover rate.......... 34% 37% 31% 15% 34% 37% 31%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
53
<PAGE> 153
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
-------------------------------------
SERIES A
INVESTOR CLASS
-------------------------------------
FOR THE
SIX MONTHS
ENDED YEAR YEAR
3/31/95 ENDED ENDED
(UNAUDITED) 9/30/94 9/30/93
----------- -------- --------
<S> <C> <C> <C>
Net asset value at beginning of period.............................................. $ 13.40 $ 12.47 $ 9.87
----------- -------- --------
Income from investment operations
Net investment income............................................................ 0.01 0.12 0.12
Net realized gain (loss) on investments.......................................... (0.68) 1.15 2.59
----------- -------- --------
Total from investment operations............................................. (0.67) 1.27 2.71
----------- -------- --------
Less distributions
Distributions from net investment income......................................... -- (0.09) (0.11)
Distributions from net realized capital gains.................................... (0.36) (0.25) --
----------- -------- --------
Total distributions.......................................................... (0.36) (0.34) (0.11)
----------- -------- --------
Net asset value at end of period.................................................... $ 12.37 $ 13.40 $ 12.47
========== ======== ======
Total return........................................................................ (4.99)%(3) 10.24%(3) 27.72%(3)
Ratios/Supplemental data
Net Assets at end of period (in thousands)....................................... $15,695 $ 14,433 $ 3,669
Ratios of expenses to average net assets
After advisory/administration fee waivers...................................... 1.35%(2) 1.35% 1.25%
Before advisory/administration fee waivers..................................... 1.54%(2) 1.54% 1.31%
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................................... 0.23%(2) 0.96% 1.27%
Before advisory/administration fee waivers..................................... 0.05%(2) 0.77% 1.21%
Portfolio turnover rate............................................................. 34% 37% 31%
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
-------------------------------
SERVIES A SERIES B
INVESTOR CLASS INVESTOR CLASS
--------------- ---------------
FOR THE
FOR THE PERIOD
PERIOD 10/03/94(1)
6/02/92(1) THROUGH
THROUGH 3/31/95
6/30/92 (UNAUDITED)
------- --------------
<S> <C> <C>
Net asset value at beginning of period.............................................. $10.68 $13.35
------- ------
Income from investment operations
Net investment income............................................................ 0.09 (0.01)
Net realized gain (loss) on investments.......................................... (0.83) (0.64)
------- ------
Total from investment operations............................................. (0.74) (0.65)
------- ------
Less distributions
Distributions from net investment income......................................... (0.07) --
Distributions from net realized capital gains.................................... -- (0.36)
------- ------
Total distributions.......................................................... (0.07) (0.36)
------- ------
Net asset value at end of period.................................................... $ 9.87 $12.34
====== ======
Total return........................................................................ (6.94)%(3) (4.86)%(4)
Ratios/Supplemental data
Net Assets at end of period (in thousands)....................................... $ 58 $ 803
Ratios of expenses to average net assets
After advisory/administration fee waivers...................................... 1.20%(2) 1.95%(2)
Before advisory/administration fee waivers..................................... 1.21%(2) 2.13%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................................... 2.59%(2) (0.14)%(2)
Before advisory/administration fee waivers..................................... 2.58%(2) (0.32)%(2)
Portfolio turnover rate............................................................. 16% 34%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
(4) Contingent deferred sales load not reflected in total return.
See accompanying notes to financial statements.
54
<PAGE> 154
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERNATIONAL EMERGING MARKETS PORTFOLIO
-------------------------------------------------------
INSTITUTIONAL SERVICE
CLASS CLASS
------------------------ ------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED 6/17/94(1) ENDED 6/17/94(1)
3/31/95 THROUGH 3/31/95 THROUGH
(UNAUDITED) 9/30/94 (UNAUDITED) 9/30/94
----------- -------- ----------- --------
<S> <C> <C> <C> <C>
Net asset value at beginning of period.............................. $ 10.56 $10.00 $ 10.55 $10.00
----------- -------- ----------- --------
Income from investment operations
Net investment income............................................ 0.01 0.03 0.03 0.02
Net gain (loss) on investments (both realized and unrealized).... (2.47) 0.53 (2.49) 0.53
----------- -------- ----------- --------
Total from investment operations............................. (2.46) 0.56 (2.46) 0.55
----------- -------- ----------- --------
Less distributions
Distributions from net investment income......................... -- -- -- --
Distributions from net realized capital gains.................... (0.19) -- (0.19) --
----------- -------- ----------- --------
Total distributions.......................................... (0.19) -- (0.19) --
----------- -------- ----------- --------
Net asset value at end of period.................................... $ 7.91 $10.56 $ 7.90 $10.55
========= ====== ========= ======
Total return........................................................ (23.58)% 5.60% (23.60)% 5.50%
Ratios/Supplemental data
Net assets at end of period (in thousands)....................... $ 9,117 $2,511 $ 6,341 $3,505
Ratios of expenses to average net assets
After advisory/administration fee waivers...................... 1.75%(2) 1.75%(2) 2.00%(2) 2.00%(2)
Before advisory/administration fee waivers..................... 2.41%(2) 2.73%(2) 2.66%(2) 2.98%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................... 1.65%(2) 1.19%(2) 1.28%(2) 1.10%(2)
Before advisory/administration fee waivers..................... 0.99%(2) 0.21%(2) 0.62%(2) 0.12%(2)
Portfolio turnover rate............................................. 31% 4% 31% 4%
<CAPTION>
INTERNATIONAL EMERGING
MARKETS PORTFOLIO
--------------------------
SERIES A INVESTOR CLASS
--------------------------
FOR THE FOR THE
SIX MONTHS PERIOD
ENDED 6/17/94(1)
3/31/95 THROUGH
(UNAUDITED) 9/30/94
----------- --------
<S> <C<C> <C>
Net asset value at beginning of period.............................. $ 10.54 $ 10.00
----------- --------
Income from investment operations
Net investment income............................................ 0.03 0.02
Net gain (loss) on investments (both realized and unrealized).... (2.50) 0.52
----------- --------
Total from investment operations............................. (2.47) 0.54
----------- --------
Less distributions
Distributions from net investment income......................... -- --
Distributions from net realized capital gains.................... (0.19) --
----------- --------
Total distributions.......................................... (0.19) --
----------- --------
Net asset value at end of period.................................... $ 7.88 $ 10.54
========= ======
Total return........................................................ (23.72)%(3) 5.40%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)....................... $ 2,475 $ 2,857
Ratios of expenses to average net assets
After advisory/administration fee waivers...................... 2.15%(2) 2.15%(2)
Before advisory/administration fee waivers..................... 2.81%(2) 3.13%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers...................... 0.83%(2) 0.74%(2)
Before advisory/administration fee waivers..................... 0.17%(2) (0.24)%(2)
Portfolio turnover rate............................................. 31% 4%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
See accompanying notes to financial statements.
55
<PAGE> 155
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
----------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS SERVICE CLASS
------------------------------------------------- ------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED YEAR YEAR 5/1/92(1) ENDED YEAR 7/29/93(1)
3/31/95 ENDED ENDED THROUGH 3/31/95 ENDED THROUGH
(UNAUDITED) 9/30/94 9/30/93 9/30/92 (UNAUDITED) 9/30/94 9/30/93
----------- -------- -------- ------- ----------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of
period.......................... $ 11.98 $ 12.42 $ 11.53 $11.01 $ 11.98 $12.42 $ 12.05
----------- -------- -------- ------- ----------- ------- --------
Income from investment operations
Net investment income......... 0.29 0.38 0.30 0.17 0.28 0.34 0.06
Net realized gain (loss) on
investments................. 0.44 (0.39) 1.15 0.51 0.44 (0.38) 0.38
----------- -------- -------- ------- ----------- ------- --------
Total from investment
operations............... 0.73 (0.01) 1.45 0.68 0.72 (0.04) 0.44
----------- -------- -------- ------- ----------- ------- --------
Less distributions
Distributions from net
investment income........... (0.23) (0.37) (0.30) (0.16) (0.22) (0.34) (0.07)
Distributions from net
realized capital gains...... (0.14) (0.06) (0.26) -- (0.14) (0.06) --
----------- -------- -------- ------- ----------- ------- --------
Total distributions....... (0.37) (0.43) (0.56) (0.16) (0.36) (0.40) (0.07)
----------- -------- -------- ------- ----------- ------- --------
Net asset value at end of
period.......................... $ 12.34 $ 11.98 $ 12.42 $11.53 $ 12.34 $11.98 $ 12.42
========= ======= ======= ====== ========= ====== ========
Total return..................... 6.22% (0.11)% 12.86% 6.23% 6.12% (0.36)% 3.66%
Ratios/Supplemental data
Net assets at end of period
(in thousands).............. $22,548 $17,610 $12,928 $2,501 $75,284 $66,024 $15,842
Ratios of expenses to average
net assets
After
advisory/administration
fee waivers............... 0.65%(2) 0.65% 0.80% 0.95%(2) 0.90%(2) 0.90% 0.93%(2)
Before
advisory/administration
fee waivers............... 0.88%(2) 0.91% 0.98% 1.51%(2) 1.13%(2) 1.16% 1.11%(2)
Ratios of net investment
income to average net assets
After
advisory/administration
fee waivers............... 3.95%(2) 3.16% 2.89% 3.28%(2) 3.70%(2) 2.96% 2.75%(2)
Before
advisory/administration
fee waivers............... 3.72%(2) 2.89% 2.71% 2.72%(2) 3.47%(2) 2.70% 2.57%(2)
Portfolio turnover rate.......... 61% 54% 32% 36% 61%(2) 54% 32%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
See accompanying notes to financial statements.
56
<PAGE> 156
THE PNC(R) FUND
FINANCIAL HIGHLIGHTS (Continued)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
---------------------------------------------------------------
SERIES A
INVESTOR CLASS
---------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR
3/31/95 ENDED ENDED ENDED ENDED
(UNAUDITED) 9/30/94 9/30/93 9/30/92 9/30/91
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.................. $ 11.98 $ 12.42 $ 11.53 $10.82 $ 9.13
----------- -------- -------- -------- --------
Income from investment operations
Net investment income................................ 0.21 0.32 0.30 0.34 0.38
Net realized gain (loss) on investments.............. 0.50 (0.38) 1.14 1.22 1.77
----------- -------- -------- -------- --------
Total from investment operations................. 0.71 (0.06) 1.44 1.56 2.15
----------- -------- -------- -------- --------
Less distributions
Distributions from net investment income............. (0.21) (0.32) (0.29) (0.39) (0.34)
Distributions from net realized capital gains........ (0.14) (0.06) (0.26) (0.46) (0.12)
----------- -------- -------- -------- --------
Total distributions.............................. (0.35) (0.38) (0.55) (0.85) (0.46)
----------- -------- -------- -------- --------
Net asset value at end of period........................ $ 12.34 $ 11.98 $ 12.42 $11.53 $10.82
========= ======== ======= ====== ======
Total return............................................ 6.03%(3) (0.50)%(3) 12.80%(3) 15.17%(3) 24.04%(3)
Ratios/Supplemental data
Net assets at end of period (in thousands)........... $62,629 $ 62,307 $39,529 $8,481 $4,265
Ratios of expenses to average net assets
After advisory/administration fee waivers.......... 1.05%(2) 1.05% 0.91% 0.95% 1.15%
Before advisory/administration fee waivers......... 1.28%(2) 1.31% 1.09% 1.51% 1.86%
Ratios of net investment income to average net assets
After advisory/administration fee waivers.......... 3.55%(2) 2.77% 2.79% 3.28% 3.70%
Before advisory/administration fee waivers......... 3.32%(2) 2.51% 2.61% 2.72% 2.99%
Portfolio turnover rate................................. 61% 54% 32% 36% 45%
<CAPTION>
BALANCED PORTFOLIO
------------------------------
SERIES A
INVESTOR SERIES B
CLASS INVESTOR CLASS
------------- --------------
FOR THE
FOR THE PERIOD
PERIOD 10/03/94(1)
5/14/90(1) THROUGH
THROUGH 3/31/95
9/30/90 (UNAUDITED)
------- --------------
<S> <C> <C>
Net asset value at beginning of period.................. $10.00 $11.95
------- ------
Income from investment operations
Net investment income................................ 0.12 0.15
Net realized gain (loss) on investments.............. (0.88) 0.56
------- ------
Total from investment operations................. (0.76) 0.71
------- ------
Less distributions
Distributions from net investment income............. (0.11) (0.19)
Distributions from net realized capital gains........ -- (0.14)
------- ------
Total distributions.............................. (0.11) (0.33)
------- ------
Net asset value at end of period........................ $ 9.13 $12.33
====== ==========
Total return............................................ (7.64)%(3) 6.03%(4)
Ratios/Supplemental data
Net assets at end of period (in thousands)........... $3,960 $1,788
Ratios of expenses to average net assets
After advisory/administration fee waivers.......... 1.15%(2) 1.65%(2)
Before advisory/administration fee waivers......... 1.90%(2) 1.88%(2)
Ratios of net investment income to average net assets
After advisory/administration fee waivers.......... 3.07%(2) 3.00%(2)
Before advisory/administration fee waivers......... 2.32%(2) 2.77%(2)
Portfolio turnover rate................................. 37% 61%
</TABLE>
- -------------
(1) Commencement of operations.
(2) Annualized.
(3) Sales load not reflected in total return.
(4) Contingent deferred sales load not reflected in total return.
See accompanying notes to financial statements.
57
<PAGE> 157
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
(UNAUDITED)
The PNC Fund (the "Fund") was organized on December 22, 1988, as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as an open-end management investment company. The Fund
consists of twenty-five separate Portfolios: Money Market Portfolio, Municipal
Money Market Portfolio, Government Money Market Portfolio, Ohio Municipal Money
Market Portfolio, Pennsylvania Municipal Money Market Portfolio, North Carolina
Municipal Money Market Portfolio, Virginia Municipal Money Market Portfolio,
Value Equity Portfolio, Growth Equity Portfolio, Small Cap Growth Equity
Portfolio, Core Equity Portfolio, Index Equity Portfolio, Small Cap Value Equity
Portfolio, International Equity Portfolio, International Emerging Markets
Portfolio, Balanced Portfolio, Managed Income Portfolio, Tax-Free Income
Portfolio, Intermediate Government Portfolio, Ohio Tax-Free Income Portfolio,
Pennsylvania Tax-Free Income Portfolio, Short-Term Bond Portfolio,
Intermediate-Term Bond Portfolio, International Fixed Income Portfolio and
Government Income Portfolio. As of March 31, 1995, the International Fixed
Income Portfolio had not commenced operations. This report relates solely to
Value Equity Portfolio, Growth Equity Portfolio, Small Cap Growth Equity
Portfolio, Core Equity Portfolio, Index Equity Portfolio, Small Cap Value Equity
Portfolio, International Equity Portfolio, International Emerging Markets
Portfolio and Balanced Portfolio (the "Portfolios").
Each Portfolio has four classes of shares, one class being referred to as
the Service shares, one class being referred to as the Institutional shares, one
class being referred to as the Series A Investor shares and one class being
referred to as the Series B Investor shares. No Series B Investor shares had
been issued for the Value Equity Portfolio, Growth Equity Portfolio, Small Cap
Growth Equity Portfolio, Core Equity Portfolio, International Emerging Markets
Portfolio and the Index Equity Portfolio through March 31, 1995. Series A
Investor, Series B Investor, Institutional and Service shares in a Portfolio
represent equal pro rata interests in such Portfolio, except that they bear
different expenses which reflect the difference in the range of services
provided to them. Series A Investor shares bear the expense of the Series A
Distribution and Service Plan at an annual rate not to exceed .55% of the
average daily net asset value of each Portfolio's outstanding Series A Investor
shares. Series B Investor shares bear the expense of the Series B Distribution
Plan at an annual rate not to exceed .75% of the average daily net asset value
of each Portfolio's outstanding Series B Investor shares. Series B Investor
shares also bear the expense of the Series B Service Plan at an annual rate not
to exceed .25% of the average daily net asset value of each Portfolio's
outstanding Series B Investor shares. Under the Fund's Service Plan, Service
shares bear the expense of fees at an annual rate not to exceed .15% of the
average daily net asset value of each Portfolio's outstanding Service shares.
Service shares also bear the expense of a service fee at an annual rate not to
exceed .15% of the average daily net asset value of each Portfolio's outstanding
Service shares for other shareholder support activities provided by service
organizations. Institutional shares do not bear the expense of the Series A
Distribution and Service Plan, the Service Plan, the Series B Distribution Plan
or the Series B Service Plan. The Service, Series A Investor and Series B
Investor classes are currently bearing such respective expenses at aggregate
annual rates of .30% of the average daily net asset value of Service shares,
.40% of the average daily net asset value of Series A Investor shares and 1.00%
of the average daily net asset value of Series B Investor shares.
58
<PAGE> 158
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Security Valuation -- Portfolio securities for which market quotations are
readily available are valued at market value, which is currently determined
using the last reported sales price. If no sales are reported, as in the case of
some securities traded over-the-counter, portfolio securities are valued at the
mean between the last reported bid and asked prices. Corporate bonds are valued
on the basis of quotations provided by a pricing service which uses information
with respect to transactions on bonds, quotations from bond dealers, market
transactions in comparable securities and various relationships between
securities in determining value. Short-term obligations with maturities of 60
days or less are valued at amortized cost which approximates market value.
Discounts and premiums on debt securities are amortized for book and tax
purposes using the effective yield-to-maturity method over the term of the
instrument.
Dividends to Shareholders -- Dividends from net investment income are
declared and paid quarterly for the Portfolios. Net realized capital gains, if
any, will be distributed at least annually.
Federal Taxes -- No provision is made for Federal taxes as it is the Fund's
intention to have each Portfolio continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from Federal income and excise taxes.
Foreign Currency Transactions -- With respect to the International Equity
Portfolio and International Emerging Markets Portfolio, transactions denominated
in foreign currencies are recorded in the Portfolios' records at the current
prevailing exchange rates. Asset and liability accounts that are denominated in
a foreign currency are adjusted daily to reflect current exchange rates.
Transaction gains or losses resulting from changes in exchange rates during the
reporting period or upon settlement of the foreign currency transaction are
reported in operations for the current period. It is not practical to isolate
that portion of both realized and unrealized gains and losses on investments in
the statement of operations that result from fluctuations in foreign currency
exchange rates. The Portfolios report certain foreign currency related
transactions as components of realized gains for financial reporting purposes,
whereas such components are treated as ordinary income for Federal income tax
purposes.
Security Transactions and Investment Income -- Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
Federal income tax purposes. Interest income is recorded on the accrual basis.
Dividends are recorded on the ex-dividend date. Certain expenses, principally
fees relating to the Service Plan, the Series A Distribution and Service Plan,
the Series B Distribution Plan and the Series B Service Plan, are class specific
expenses. Expenses not directly attributable to a specific Portfolio or class
are allocated among all of the Portfolios or classes of the Fund based on their
relative net assets.
Repurchase Agreements -- Money market instruments may be purchased from
banks and non-bank dealers subject to the seller's agreement to repurchase them
at an agreed upon date and price. Collateral for repurchase agreements may have
longer maturities than the maximum permissible remaining maturity of portfolio
investments. The seller will be required on a daily basis to maintain the value
of the securities subject to the agreement at not less than the repurchase
price. The agreements are conditioned upon the
59
<PAGE> 159
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
collateral being deposited under the Federal Reserve book-entry system or held
in a separate account by the Fund's custodian or an authorized securities
depository.
Organization Costs -- Costs incurred by each Portfolio in connection with
its organization, registration and initial public offering have been deferred
and are being amortized using the straight-line method over a five-year period
beginning on the date on which each Portfolio commenced its investment
activities.
Implementation of AICPA Statement of Position 93-2: -- As of October 1,
1993, the Fund implemented AICPA Statement of Position 93-2 -- Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distributions by Investment Companies. Adoption of this
standard results in the reclassification to paid-in capital of permanent
differences between tax and financial reporting of net investment income and net
realized gain (loss). The change has had no material effect on paid-in capital
or other components of the net assets of any of the Portfolios at October 1,
1993. Distributions to shareholders and net asset values were not affected by
this change.
Futures Transactions -- Certain portfolios may enter into futures contracts
subject to certain limitations. Upon entering into a futures contract, the
Portfolio is required to deposit cash or pledge U.S. Government securities in an
amount equal to five percent of the purchase price indicated in the futures
contract (initial margin). Subsequent payments, which are dependent on the daily
fluctuations in the value of the underlying security or securities, are made or
received by the Portfolio each day (daily variation margin) and are recorded as
unrealized gains or losses until the contracts are closed. When the contracts
are closed, the Portfolio records a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction and
the Portfolio's basis in the contracts. Risks of entering into futures contracts
include the possibility that there will not be a perfect price correlation
between the futures contract and the underlying securities. Second, it is
possible that a lack of liquidity for futures contracts could exist in the
secondary market, resulting in an inability to close a futures position prior to
its maturity date. Third, the purchase of a futures contract involves the risk
that a Portfolio could lose more than the original margin deposit required to
initiate a futures transaction.
At March 31, 1995, the Index Equity Portfolio had outstanding 92 futures
contracts on the S&P 500 Stock Index, expiring June 16, 1995. The value of such
contracts on March 31, 1995 was $23,202,400, thereby resulting in an unrealized
gain of $761,300.
Futures transactions entered into for the six months ended March 31, 1995,
are summarized as follows:
<TABLE>
<CAPTION>
NUMBER OPENING
OF CONTRACTS VALUE
------------- ------------
<S> <C> <C>
Long Futures Contracts Opened......................................... 249 $ 58,682,925
Long Futures Contracts Closed......................................... (164) (37,883,500)
------ ------------
Outstanding Long Futures at
Beginning of period................................................. 7 1,641,675
------ ------------
End of period....................................................... 92 $ 22,441,100
=========== =============
</TABLE>
60
<PAGE> 160
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
Forward Foreign Currency Contracts -- International Equity Portfolio may
enter into forward foreign currency contracts to hedge against adverse changes
in the relationship of the U.S. dollar to foreign currencies. At March 31, 1995,
the Portfolio had entered into the following positions and the related
unrealized gain (loss) is reflected in the accompanying financial statements:
<TABLE>
<CAPTION>
UNREALIZED
VALUE AT FOREIGN
SETTLEMENT CURRENCY CONTRACT MARCH 31, EXCHANGE
DATE BOUGHT AMOUNT 1995 GAIN/(LOSS)
- ---------- -------------------------------------------- ------------- ------------- -----------
<C> <S> <C> <C> <C>
7/11/95 128,137,860 French Franc............... $ 24,515,201 $ 26,559,391 $ 2,044,190
7/11/95 27,528,900 German Deutsche Mark........ 18,173,162 20,140,838 1,967,676
7/11/95 27,600,073 Netherlands Guilder......... 16,162,785 17,997,152 1,834,367
7/11/95 21,961,619 British Pound Sterling...... 35,112,201 35,513,849 401,648
7/11/95 1,088,358,000 Japanese Yen............. 11,318,153 12,697,256 1,379,103
------------- ------------- -----------
$ 105,281,502 $ 112,908,486 $ 7,626,984
============= ============= ============
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
VALUE AT FOREIGN
SETTLEMENT CURRENCY CONTRACT MARCH 31, EXCHANGE
DATE SOLD AMOUNT 1995 GAIN/(LOSS)
- ---------- ------------------------------------------- ------------- ------------- ------------
<C> <S> <C> <C> <C>
7/11/95 128,137,860 French Franc.............. $ 24,005,719 $ 26,559,391 $ (2,553,672)
7/11/95 27,528,900 German Deutsche Mark....... 17,744,993 20,140,838 (2,395,845)
7/11/95 27,600,073 Netherlands Guilder........ 15,882,037 17,997,152 (2,115,115)
7/11/95 21,961,619 British Pound Sterling..... 33,770,416 35,513,849 (1,743,433)
7/11/95 1,088,358,000 Japanese Yen............ 11,400,000 12,697,256 (1,297,256)
------------- ------------- ------------
$ 102,803,165 $ 112,908,486 $(10,105,321)
============= ============= =============
</TABLE>
Risks may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of foreign currency relative to the U.S.
dollar.
(B) TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to an Investment Advisory Agreement, PNC Institutional Management
Corporation ("PIMC"), a wholly-owned subsidiary of PNC Asset Management Group,
Inc. ("PAMG"), which is in turn a wholly-owned subsidiary of PNC Bank, National
Association ("PNC Bank"), serves as investment adviser for each of the Fund's
Portfolios. PNC Equity Advisors Company ("PEAC"), a wholly-owned subsidiary of
PAMG, serves as the sub-adviser for the Growth Equity, Small Cap Growth Equity,
Core Equity and Index Equity Portfolios. PNC Bank serves as the sub-adviser for
the Balanced Portfolio. Provident Capital Management, Inc. ("PCM") serves as the
sub-adviser for the Value Equity, Small Cap Value Equity, International Equity
and International Emerging Markets Portfolios. PNC Bank, PAMG, PIMC, PEAC and
PCM are indirect wholly-owned subsidiaries of PNC Bank Corp.
61
<PAGE> 161
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
For its advisory services, PIMC is entitled to receive fees at the
following annual rates, computed daily and payable monthly based on each
Portfolio's average daily net assets:
Value Equity, Growth Equity, Small Cap Growth Equity, Core Equity, Small
Cap Value Equity and Balanced Portfolios -- .55% of its first $1 billion, .50%
of the next $1 billion, .475% of the next $1 billion and .45% of net assets in
excess of $3 billion.
Index Equity Portfolio -- .20% of its average daily net assets.
International Equity Portfolio -- .75% of its first $1 billion, .70% of the
next $1 billion, .675% of the next $1 billion and .65% of net assets in excess
of $3 billion.
International Emerging Markets Portfolio -- 1.25% of its first $1 billion,
1.20% of the next $1 billion, 1.155% of the next $1 billion, and 1.10% of net
assets in excess of $3 billion.
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for any Portfolio. For the six months ended March 31, 1995,
advisory fees and waivers for each Portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
---------- -------- ----------
<S> <C> <C> <C>
Value Equity Portfolio............................ $1,759,164 $383,817 $1,375,347
Growth Equity Portfolio........................... 469,375 128,012 341,363
Small Cap Growth Equity Portfolio................. 289,259 55,707 233,552
Core Equity Portfolio............................. 341,607 93,165 248,442
Index Equity Portfolio............................ 180,359 161,218 19,141
Small Cap Value Equity Portfolio.................. 603,856 54,896 548,960
International Equity Portfolio.................... 1,393,899 278,780 1,115,119
International Emerging Markets Portfolio.......... 74,804 34,203 40,601
Balanced Portfolio................................ 409,649 111,723 297,926
</TABLE>
PIMC pays PNC Bank, PEAC and PCM fees for their sub-advisory services.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank Corp.,
and Provident Distributors, Inc. ("PDI") act as co-administrators for the Fund.
The combined administration fee is computed daily and payable monthly, based on
a percentage of the average daily net assets of each Portfolio, at the following
annual rates: .20% of the first $500 million, .18% of the next $500 million,
.16% of the next $1 billion and .15% of net assets in excess of $2 billion.
62
<PAGE> 162
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
PFPC and PDI may, at their discretion, voluntarily waive all or any portion
of their administration fees for any Portfolio. For the six months ended March
31, 1995, administration fees and waivers for each Portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION ADMINISTRATION
FEE WAIVER FEE
-------------- -------- --------------
<S> <C> <C> <C>
Value Equity Portfolio................................ $625,594 $ 82,014 $543,580
Growth Equity Portfolio............................... 170,682 38,229 132,453
Small Cap Growth Equity Portfolio..................... 105,185 20,257 84,928
Core Equity Portfolio................................. 124,221 30,815 93,406
Index Equity Portfolio................................ 180,359 162,756 17,603
Small Cap Value Equity Portfolio...................... 219,584 49,330 170,254
International Equity Portfolio........................ 371,706 68,015 303,691
International Emerging Markets Portfolio.............. 11,968 5,472 6,496
Balanced Portfolio.................................... 148,963 59,607 89,356
</TABLE>
In addition, PNC Bank serves as custodian for each of the Fund's
Portfolios. PFPC serves as transfer and dividend disbursing agent.
PIMC, PFPC and PDI have also agreed to reimburse each Portfolio for the
amount, if any, by which the total operating and management expenses of such
Portfolio for any fiscal year exceed the most restrictive state blue sky expense
limitation in effect from time to time, to the extent required by such
limitation. No such reimbursements were necessary for the six months ended March
31, 1995.
(C) PURCHASES AND SALES OF SECURITIES
For the six months ended March 31, 1995, purchases and sales of securities,
other than short-term and government securities, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Value Equity Portfolio.............................................. $ 38,284,107 $126,890,126
Growth Equity Portfolio............................................. 109,514,208 50,873,364
Small Cap Growth Equity Portfolio................................... 61,463,200 38,197,881
Core Equity Portfolio............................................... 70,153,777 26,841,589
Index Equity Portfolio.............................................. 4,338,772 15,517,640
Small Cap Value Equity Portfolio.................................... 37,279,904 42,062,962
International Equity Portfolio...................................... 156,791,163 123,323,123
International Emerging Markets Portfolio............................ 15,615,065 3,319,997
Balanced Portfolio.................................................. 70,160,919 44,772,299
</TABLE>
63
<PAGE> 163
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(UNAUDITED)
For the six months ended March 31, 1995, purchases and sales of government
securities were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Index Equity Portfolio............................................. $ 1,284,996 $ --
Small Cap Value Equity Portfolio................................... 16,953,070 --
Balanced Portfolio................................................. 20,177,547 24,447,789
</TABLE>
(D) CAPITAL SHARES
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
VALUE EQUITY PORTFOLIO
-------------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
--------------------------- -------------------------
SHARES VALUE SHARES VALUE
----------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class.................. 1,850,795 $ 21,340,217 12,482,545 $145,402,977
Service Class........................ 2,504,436 28,981,826 11,420,404 133,583,231
Series A Investor Class.............. 271,948 3,135,929 549,692 6,421,094
Shares issued in acquisition:
Institutional Class.................. -- -- 6,598,466 76,359,690
Service Class........................ -- -- -- --
Series A Investor Class.............. -- -- -- --
Shares issued in reinvestment of
dividends:
Institutional Class.................. 1,586,297 17,983,038 1,465,316 17,028,775
Service Class........................ 278,467 3,160,729 170,840 1,983,734
Series A Investor Class.............. 34,507 391,318 23,783 276,302
Shares redeemed:
Institutional Class.................. (12,182,150) (139,304,004) (7,860,051) (91,683,551)
Service Class........................ (1,448,146) (16,725,778) (4,534,339) (53,327,116)
Series A Investor Class.............. (166,401) (1,906,900) (93,980) (1,095,554)
----------- ------------- ---------- ------------
Net increase (decrease)................... (7,270,247) $ (82,943,625) 20,222,676 $234,949,582
============ ============== ========== =============
</TABLE>
64
<PAGE> 164
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
<TABLE>
<CAPTION>
GROWTH EQUITY PORTFOLIO
-----------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31,1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
------------------------- -------------------------
SHARES VALUE SHARES VALUE
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class..................... 6,769,786 $ 68,672,134 5,402,429 $ 55,921,412
Service Class........................... 1,595,758 16,309,644 4,235,370 44,688,111
Series A Investor Class................. 239,539 2,442,329 385,847 4,122,589
Shares issued in reinvestment of dividends:
Institutional Class..................... 83,442 831,916 50,847 555,756
Service Class........................... 19,104 190,471 10,725 117,219
Series A Investor Class................. 2,815 28,031 2,650 28,942
Shares redeemed:
Institutional Class..................... (1,230,847) (12,552,045) (4,497,375) (47,960,268)
Service Class........................... (627,164) (6,432,576) (1,377,677) (14,500,982)
Series A Investor Class................. (83,513) (852,664) (95,762) (991,600)
---------- ------------ ---------- ------------
Net increase................................. 6,768,920 $ 68,637,240 4,117,054 $ 41,981,179
========== ============= ========== =============
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP GROWTH EQUITY PORTFOLIO
----------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
------------------------ ------------------------
SHARES VALUE SHARES VALUE
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class..................... 2,318,027 $25,230,251 6,318,147 $61,898,992
Service Class........................... 898,852 9,804,036 2,508,294 24,932,282
Series A Investor Class................. 135,682 1,475,472 199,989 2,012,738
Shares issued in reinvestment of dividends:
Institutional Class..................... 10,636 112,950 289 2,896
Service Class........................... 70 741 72 716
Series A Investor Class................. -- -- 3 29
Shares redeemed:
Institutional Class..................... (490,202) (5,286,424) (941,326) (9,351,176)
Service Class........................... (398,330) (4,201,053) (362,210) (3,636,495)
Series A Investor Class................. (16,547) (178,883) (43,898) (443,425)
--------- ----------- --------- -----------
Net increase................................. 2,458,188 $26,957,090 7,679,360 $75,416,557
========= ============ ========= ============
</TABLE>
65
<PAGE> 165
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
<TABLE>
<CAPTION>
CORE EQUITY PORTFOLIO
-----------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
------------------------- -------------------------
SHARES VALUE SHARES VALUE
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class........................ 6,458,298 $ 63,893,031 3,234,844 $ 32,284,922
Service Class.............................. 1,734,051 17,140,429 4,222,406 41,703,020
Series A Investor Class.................... 104,895 1,028,374 62,504 619,978
Shares issued in acquisition:
Institutional Class........................ -- -- -- --
Service Class.............................. -- -- 2,120,797 21,441,256
Series A Investor Class.................... -- -- -- --
Shares issued in reinvestment of dividends:
Institutional Class........................ 158,210 1,553,279 54,106 536,408
Service Class.............................. 91,159 887,842 39,095 385,556
Series A Investor Class.................... 2,201 21,588 517 5,097
Shares redeemed:
Institutional Class........................ (920,543) (9,085,292) (5,383,666) (53,714,044)
Service Class.............................. (1,353,237) (13,547,881) (1,483,259) (14,757,102)
Series A Investor Class.................... (8,730) (86,277) (2,426) (24,013)
---------- ------------ ---------- ------------
Net increase................................. 6,266,304 $ 61,805,093 2,864,918 $ 28,481,078
========== ============= ========== =============
</TABLE>
<TABLE>
<CAPTION>
INDEX EQUITY PORTFOLIO
-----------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
------------------------- -------------------------
SHARES VALUE SHARES VALUE
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class........................ 2,048,597 $ 22,480,492 2,748,481 $ 30,530,750
Service Class.............................. 2,193,235 25,009,877 2,738,322 29,856,693
Series A Investor Class.................... 107,512 1,204,570 155,908 1,717,243
Shares issued in reinvestment of dividends:
Institutional Class........................ 356,713 3,909,332 514,324 5,647,787
Service Class.............................. 67,296 738,205 57,047 624,860
Series A Investor Class.................... 6,908 75,798 6,194 67,935
Shares redeemed:
Institutional Class........................ (2,313,347) (25,387,286) (6,637,885) (72,216,872)
Service Class.............................. (490,084) (5,380,239) (1,419,801) (15,374,054)
Series A Investor Class.................... (34,350) (381,552) (35,869) (384,797)
---------- ------------ ---------- ------------
Net increase (decrease)...................... 1,942,480 $ 22,269,197 (1,873,279) $(19,530,455)
========== ============= ========== =============
</TABLE>
66
<PAGE> 166
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
<TABLE>
<CAPTION>
SMALL CAP VALUE EQUITY PORTFOLIO
----------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
------------------------- ------------------------
SHARES VALUE SHARES VALUE
---------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class......................... 1,433,173 $ 18,514,153 6,053,107 $80,712,762
Service Class............................... 825,583 10,716,392 2,640,878 35,259,165
Series A Investor Class..................... 310,405 4,030,081 652,661 8,700,548
Series B Investor Class..................... 66,884 872,991 -- --
Shares issued in reinvestment of dividends:
Institutional Class......................... 561,434 6,967,400 136,855 1,781,855
Service Class............................... 138,871 1,723,392 34,742 452,345
Series A Investor Class..................... 62,375 773,445 14,918 194,087
Series B Investor Class..................... 1,891 23,430 -- --
Shares redeemed:
Institutional Class......................... (2,235,305) (28,862,769) (3,674,313) (48,788,351)
Service Class............................... (620,209) (7,987,465) (996,563) (13,349,689)
Series A Investor Class..................... (184,720) (2,375,182) (118,889) (1,579,039)
Series B Investor Class..................... (1,963) (25,578) -- --
---------- ------------ ---------- -----------
Net increase.................................. 358,419 $ 4,370,290 4,743,396 $63,383,683
========== ============= ========== ============
</TABLE>
67
<PAGE> 167
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------
FOR THE SIX MONTHS ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
-------------------------- --------------------------
SHARES VALUE SHARES VALUE
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class..................... 3,695,935 $ 45,888,736 10,403,157 $137,086,511
Service Class........................... 1,852,610 23,136,354 5,340,051 70,470,270
Series A Investor Class................. 333,134 4,205,525 869,084 11,416,406
Series B Investor Class................. 65,078 829,024 -- --
Shares issued in acquisition:
Institutional Class..................... -- -- 2,566,789 33,881,621
Service Class........................... -- -- -- --
Series A Investor Class................. -- -- -- --
Series B Investor Class................. -- -- -- --
Shares issued in reinvestment of
dividends:
Institutional Class..................... 521,554 6,451,626 206,166 2,655,420
Service Class........................... 123,648 1,527,047 27,454 353,613
Series A Investor Class................. 34,649 427,221 12,576 161,981
Series B Investor Class................. 1,195 14,710 -- --
Shares redeemed:
Institutional Class..................... (1,555,560) (19,566,359) (2,476,409) (32,400,362)
Service Class........................... (801,285) (10,018,188) (724,128) (9,567,654)
Series A Investor Class................. (176,575) (2,174,201) (98,546) (1,302,076)
Series B Investor Class................. (1,153) (14,097) -- --
---------- ------------ ---------- ------------
Net increase.............................. 4,093,230 $ 50,707,398 16,126,194 $212,755,730
========== ============= ========== =============
</TABLE>
68
<PAGE> 168
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
<TABLE>
<CAPTION>
INTERNATIONAL EMERGING MARKETS PORTFOLIO
----------------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED JUNE 17, 1994(1)
MARCH 31, 1995 THROUGH
(UNAUDITED) SEPTEMBER 30, 1994
----------------------- --------------------
SHARES VALUE SHARES VALUE
--------- ----------- ------- ----------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class........................... 992,238 $ 8,278,461 238,035 $2,402,550
Service Class................................. 561,457 4,986,323 334,803 3,411,089
Series A Investor Class....................... 70,389 675,246 294,215 2,964,354
Shares issued in reinvestment of dividends:
Institutional Class........................... 1,355 12,400 -- --
Service Class................................. 5,218 47,638 -- --
Series A Investor Class....................... 6,033 55,023 -- --
Shares redeemed:
Institutional Class........................... (78,926) (736,906) (173) (1,850)
Service Class................................. (95,651) (772,230) (2,612) (27,034)
Series A Investor Class....................... (33,310) (303,501) (23,182) (232,921)
--------- ----------- ------- ----------
Net increase....................................... 1,428,803 $12,242,454 841,086 $8,516,188
========= ============ ======== ==========
</TABLE>
- -------------
(1) Commencement of operations.
69
<PAGE> 169
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
---------------------------------------------------
FOR THE SIX MONTHS
ENDED
MARCH 31, 1995 FOR THE YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1994
----------------------- -------------------------
SHARES VALUE SHARES VALUE
--------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold:
Institutional Class...................... 642,170 $ 7,681,786 1,367,828 $ 17,190,809
Service Class............................ 1,145,399 13,771,664 6,873,562 84,853,542
Series A Investor Class.................. 415,406 4,962,575 2,650,204 33,055,064
Series B Investor Class.................. 147,935 1,758,696 -- --
Shares issued in acquisition:
Institutional Class...................... -- -- -- --
Service Class............................ -- -- 1,362,909 17,268,053
Series A Investor Class.................. -- -- -- --
Series B Investor Class.................. -- -- -- --
Shares issued in reinvestment of dividends:
Institutional Class...................... 47,319 560,914 24,801 302,800
Service Class............................ 163,424 1,935,460 121,007 1,475,817
Series A Investor Class.................. 148,074 1,751,475 142,423 1,746,240
Series B Investor Class.................. 2,858 33,889 -- --
Shares redeemed:
Institutional Class...................... (332,339) (3,956,755) (963,835) (12,093,104)
Service Class............................ (717,859) (8,538,892) (4,122,713) (50,677,486)
Series A Investor Class.................. (689,000) (8,237,545) (774,539) (9,531,304)
Series B Investor Class.................. (5,740) (68,431) -- --
--------- ----------- ---------- ------------
Net increase.................................. 967,647 $11,654,836 6,681,647 $ 83,590,431
========= ============ ========== =============
</TABLE>
70
<PAGE> 170
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
(E) AT MARCH 31, 1995, NET ASSETS CONSISTED OF:
<TABLE>
<CAPTION>
SMALL CAP
VALUE EQUITY GROWTH EQUITY GROWTH EQUITY CORE EQUITY INDEX EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Capital paid-in........................... $552,428,784 $202,793,195 $114,111,304 $158,418,085 $184,364,122
Undistributed net investment income....... -- 672,905 133,515 11,023 --
Distribution in excess of net
investment income....................... (363,829) -- -- -- (101,636)
Accumulated net realized gain (loss) on
investment transactions, futures
contracts and foreign exchange
contracts............................... 15,632,086 707,089 (8,079,381 ) (785,979) 1,507,753
Net unrealized appreciation (depreciation)
on investment transactions, futures
contracts and foreign exchange
contracts............................... 68,190,853 19,362,461 25,469,214 10,598,722 26,445,415
------------ ------------- ------------- ------------ ------------
$635,887,894 $223,535,650 $131,634,652 $168,241,851 $212,215,654
============= ============== ============== ============= =============
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP INTERNATIONAL INTERNATIONAL
VALUE EQUITY EQUITY EMERGING MARKETS BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ---------------- ------------
<S> <C> <C> <C> <C>
Capital paid-in....................................... $200,228,965 $ 389,784,534 $ 20,758,642 $158,731,959
Undistributed net investment income................... 256,621 3,171,685 105,538 --
Distribution in excess of net investment income....... -- -- -- (744)
Accumulated net realized gain (loss) on investment
transactions, futures contracts and foreign
exchange contracts.................................. 3,736,064 1,328,330 (10,915) (5,339,794)
Net unrealized appreciation (depreciation) on
investment transactions, futures contracts and
foreign
exchange contracts.................................. 22,810,842 2,981,152 (2,919,895) 8,857,352
------------ ------------- ---------------- ------------
$227,032,492 $ 397,265,701 $ 17,933,370 $162,248,773
============= ============= ================== =============
</TABLE>
(F) CAPITAL LOSS CARRYOVERS
At September 30, 1994, a capital loss carryover was available to offset
possible future realized capital gains of $6,672,353 in the Small Cap Growth
Equity Portfolio which expires in the year 2002.
At September 30, 1994, the deferred post-October capital loss was $541,673
for the Growth Equity Portfolio.
(G) ACQUISITION OF COLLECTIVE FUNDS
On December 28, 1993, The PNC Fund acquired all the assets of the Equity
Portfolio of the PNC Financial Common Trust for Retirement Assets from the
participants of these Trusts. The acquisition was accomplished by a tax-free
exchange of assets with a value of $21,441,256 for 2,120,797 Service shares of
the Core Equity Portfolio at $10.11 per share. The Equity Portfolio's net assets
on that date had $2,089,340 in unrealized appreciation.
71
<PAGE> 171
THE PNC(R) FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
MARCH 31, 1995
On December 28, 1993, The PNC Fund acquired all the assets of the Asset
Allocation Portfolio of the PNC Financial Common Trust for Retirement Assets
from the participants of these Trusts. The acquisition was accomplished by a
tax-free exchange of assets with a value of $17,268,053 for 1,362,909 Service
shares of the Balanced Portfolio at $12.67 per share. The Asset Allocation
Portfolio's net assets on that date had $1,491,666 in unrealized appreciation.
On May 26, 1994, The PNC Fund acquired all the assets of the PNC Pension
Plan Assets Equity Portfolio from the participants of such fund. The acquisition
was accomplished by a tax-free exchange of assets with a value of $53,018,086
for 4,570,525 Institutional shares of the Value Equity Portfolio at $11.60 per
share and a value of $33,881,621 for 2,566,789 Institutional shares of the
International Equity Portfolio at $13.20 per share.
On June 21, 1994 The PNC Fund acquired all the assets of the PNC Incentive
Savings Plan Assets Equity Portfolio from the participants of such fund. The
acquisition was accomplished by a tax-free exchange of assets with a value of
$23,341,604 for 2,027,941 Institutional shares of the Value Equity Portfolio at
$11.51 per share.
72
<PAGE> 172
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<PAGE> 173
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====================================================
Investment Adviser
PNC Institutional Management
Corporation
Wilmington, Delaware 19809
Sub-Adviser -- Value Equity Portfolio
Small Cap Value Equity Portfolio,
International Equity Portfolio and
International Emerging Markets Portfolio
Provident Capital Management, Inc.
Philadelphia, Pennsylvania 19103
Sub-Adviser -- Growth Equity Portfolio
Small Cap Growth Equity Portfolio, Core
Equity Portfolio and Index Equity Portfolio
PNC Equity Advisors Co.
Philadelphia, Pennsylvania 19101
Sub-Adviser -- Balanced Portfolio and
Custodian
PNC Bank, National Association
Philadelphia, Pennsylvania 19101
Co-Administrator and Transfer Agent
PFPC Inc.
Wilmington, Delaware 19809
Co-Administrator and Distributor
Provident Distributors, Inc.
Radnor, Pennsylvania 19087
Counsel
Drinker Biddle & Reath
Philadelphia, Pennsylvania 19107
Independent Accountants
Coopers & Lybrand, L.L.P.
Philadelphia, Pennsylvania 19103
PNCI-T-01E
====================================================
====================================================
[PCN FUNDS LOGO]
THE PNC(R) FUND
VALUE EQUITY PORTFOLIO
GROWTH EQUITY PORTFOLIO
SMALL CAP GROWTH EQUITY PORTFOLIO
CORE EQUITY PORTFOLIO
INDEX EQUITY PORTFOLIO
SMALL CAP VALUE EQUITY PORTFOLIO
INTERNATIONAL EQUITY PORTFOLIO
INTERNATIONAL EMERGING MARKETS PORTFOLIO
BALANCED PORTFOLIO
Semi-Annual Report to Shareholders
March 31, 1995
====================================================
